What is asset finance?

Asset financing is the purchase or refinance of assets within a business. Asset finance might be for hard assets or soft assets but are critical parts of growing businesses. Funding asset purchase or raising capital from existing assets is an important part of a finance broker’s funding array. There are two key products – hire purchase and finance lease. Which is best for you depends on how you want the tax treatment to be handled. If you take a Hire Purchase or similar the asset will be added to your balance sheet that year and you’ll get capital allowances allowing the value of the item to be deducted from your tax bill. There are a few different schemes so could be worth checking with HMRC here. A Lease or PCP keeps the asset off your balance sheet and on your profit and loss account. For business with high value assets, plant and machinery this might be more tax efficient. Our experts can help you to understand the different products and get you the equipment your business needs.

Finance Lease
Finance lease and operating lease

If your business needs equipment, plant or vehicles for a given term, or the asset will be effectively worn out at the end of the term, this is the ideal solution and the most tax efficient.


Find out more about leasing

Hire Purchase
Hire Purchase or Lease Purchase

To maintain ownership of the asset at the end of the term, or to remove your business from onerous lease conditions around usage, mileage or servicing it can be better to own the vehicle or equipment from day one. 

Find out more about hire purchase options

Finance Lease
Raise money for your business

Cashflow in business can be tricky, but if you have the assets then let us arrange the funding for you. 

Find out more about leasing

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Asset refinance

Refinancing an asset or vehicle is a great option when your business needs a cash injection.

Acorn finance have a broad panel of funders offering finance against everything from working assets within the business to classic cars or the owner’s yacht!

With no limits to the level of funding available, we just need to understand the value of the asset and put together a plan which is affordable to your business.

Equipment and Asset Leasing

Leasing equipment and vehicles is extremely common across the business world. There are various forms of lease which suit different equipment and circumstances.

The finance lease is used where you, the customer will take the asset for most or all of it’s useful life, take care of maintenance and then, at the end of the lease period either;

  • Continue to lease on a secondary lease period, potentially with lower lease payments
  • Sell the vehicle or equipment and keep a percentage of the sale value
  • Hand the asset back to the lessor (finance company)

Hire purchase

In a hire purchase agreement you, the customer pays a deposit against the asset or vehicle followed by monthly instalments for an agreed term, generally between two and five years.

A hire purchase agreement allows payments to be spread on the purchase of an expensive asset without the use of other security (a house or business premises for example). The lender will secure the loan against the asset so, if the loan repayments go into arrears the vehicle or equipment could be repossessed.

In car finance many customers are now looking to contract hire or PCP (Personal Contract Purchase) agreements rather than hire purchase, in the situation where a customer wants to have a new car often, the repayments being lower with a PCP.

Hard Assets (Tangible assets)

A hard asset is a physical item of equipment or a vehicle which has a definable value (for instance trucks, trailers, plant or printing equipment.

The most favourable assets in this class are easily transportable and have a ready resale market, this way once the primary user has replaced the item they, or the finance company are able to sell the used asset on the secondary market thus keeping the primary lease costs lower for the customer.

Hard assets can also form parts of buildings – lifts, air-conditioning or extraction equipment is all classed as hard asset and is readily fundable for most businesses.

Soft Assets (Intangible assets)

There are many assets which are not tangible in this way but can still be financed or capital raised against them, office or shop fit outs, gym and health clubs, IT cabling and infrastructure or communications fit outs. Much of the equipment would not be resaleable but it’s still possible to fund against them assuming strong financial performance of the business making the purchase.

Going further it’s possible to raise funds against soft assets which are not purchased;

  • A brand of a company
  • Investments in securities
  • Trademarks
  • Patents
  • Copyrights
  • Franchises