How Does Asset Finance Work?
Asset finance allows your business to acquire equipment, machinery, vehicles, and other tangible assets without paying the full cost upfront. Instead, you spread the cost over an agreed period with fixed monthly payments, preserving your working capital for day-to-day operations.
As a credit broker, not a lender, Balanced Funding Solutions searches across our panel of UK lenders to find the most competitive deal for your business. We handle the paperwork and lender negotiations, so you can focus on running your business.
“Many business owners do not realise just how flexible asset finance can be. Whether you are buying a single piece of equipment or fitting out an entire workshop, spreading the cost means you can invest in growth without draining your reserves.”
Types of Asset Finance
There are several ways to finance business assets in the UK. The right option depends on whether you want to own the equipment, keep payments low, or maintain flexibility.
Pay a deposit followed by fixed monthly instalments. Once all payments are made, the asset is yours. You can usually claim capital allowances from day one.
Rent the asset for an agreed period. Payments are typically 100% tax-deductible as a business expense. At the end, you can usually extend the lease or arrange a sale and retain a share of the proceeds.
Ideal for assets that depreciate quickly, such as IT equipment. You rent the asset and return it at the end, keeping your balance sheet light and allowing regular upgrades.
Release capital tied up in assets you already own. Refinancing lets you unlock equity in existing equipment or machinery to reinvest in your business or improve cash flow.
Quick Comparison
A side-by-side look at how the main options compare on the factors that matter most.
| Feature | Hire Purchase | Finance Lease | Operating Lease | Refinance |
|---|---|---|---|---|
| Own the asset? | Yes, at end of term | No (sale proceeds share) | No | Already owned |
| Deposit required? | Usually | Sometimes | No | No |
| Monthly payments | Higher | Medium | Lower | Varies |
| Capital allowances? | Yes | No (but tax-deductible) | No (but tax-deductible) | No |
| Balance sheet | On balance sheet | On balance sheet | Off balance sheet | N/A |
| Best for | Long-term ownership | Tax-efficient use | Fast-depreciating assets | Unlocking tied-up capital |
Hire Purchase
Finance Lease
Operating Lease
Refinance
Who Can Apply?
Asset finance is available to a wide range of UK businesses. While each lender has its own criteria, the general requirements are:
- UK-registered business (limited company, LLP, sole trader, or partnership)
- Minimum trading history (typically 6-12 months, though start-up finance is sometimes available)
- The asset must have a tangible resale value
- Satisfactory credit profile for the business and/or directors
- Evidence of ability to meet monthly repayments
If your business is newer or your credit profile is not straightforward, it is still worth speaking to us. Our panel includes lenders who specialise in start-ups and non-standard applications.
“The biggest advantage of asset finance is that it lets businesses invest in growth without depleting their cash reserves. A new piece of machinery can pay for itself through increased productivity long before the finance is settled.”
How It Works
Applying for asset finance through Balanced Funding Solutions is straightforward. Here is what to expect at each stage.
Get in Touch
Tell us how much you need and what the finance is for. Online form, phone, or email.
We Search
We compare options across our lender panel for your budget and credit profile.
Your Options
Full transparency on rates, terms, and fees — no obligation to proceed.
Completion
We handle the paperwork. Funds typically released within 24–48 hours.
Asset Finance Calculator
Get an estimate of your monthly payments. Adjust the figures to match your budget.
For illustration purposes only. This calculator provides an estimate based on the figures you enter. Your actual rate will depend on your individual circumstances, credit profile, and the lender’s criteria. Balanced Funding Solutions is a credit broker, not a lender.
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Frequently Asked Questions
Get Your Asset Finance Quote Today
No obligation, no impact on your credit score. Tell us what you need and we will do the rest.