What is asset finance? 

Asset finance allows companies to acquire and use assets, such as machinery, vehicles, equipment, plants, technology, and other assets, without making full upfront payments. Instead, the assets are typically purchased by a finance provider, who leases or rents them to the business over an agreed-upon term, usually with fixed monthly payments. This allows companies to access the assets they need to operate or expand while conserving their capital and managing their cash flow.

Asset finance is one of the fastest-growing options for business owners. This applies to new and old assets.

Types of asset finance arrangements

a. Hire Purchase (HP): Under a hire purchase agreement, the business pays regular instalments to the finance provider, with an option to purchase the asset at the end of the term. Once all payments are made, the business becomes the asset owner.

b. Finance Lease: In a finance lease arrangement, the business pays fixed rentals to the finance provider to use the asset over the lease term. At the end of the period, the company can typically purchase the asset, extend the lease, or return the asset.

c. Operating Lease: An operating lease is similar to a finance lease but typically has a shorter term and allows the business to return or upgrade the asset at the end of the lease period. This type of asset finance is often used for assets that have a short lifespan or require regular upgrades.

Benefits of asset finance 

Asset finance can benefit businesses in several ways. It can help them acquire assets they may not have been able to afford outright, improve their cash flow by spreading the cost of assets over time, and provide tax advantages, as lease payments may be tax-deductible. Additionally, asset finance can provide flexibility in managing assets, allowing for upgrades, returns, or purchases at the end of the lease term based on the business's needs.

We have customised solutions to meet your needs

Plant and equipment 

Factory Machinery 

Commercial Vehicles

Refinance Existing Assets

Many companies are coming up with the idea of refinancing existing equipment. It helps with instant finance, but at this point, banks are cautious and it is very hard to get approval.

But the good news is, CHFinance can help you where banks will not. We have a huge list of lenders to arrange funds for your requirements.

Why choose CHFinance? 

It is important to note that asset finance arrangements can vary depending on the provider and the specific terms and conditions agreed upon in the contract. Businesses should carefully review and understand the terms of the agreement, including the interest rates, fees, and end-of-lease options, before entering into an asset finance arrangement. Seeking professional financial advice is also beneficial to ensure that the chosen asset finance option aligns with the business's financial goals and requirements.

With our disciplined approach, wide network and skilled representatives, we serve each of our customers with a full heart.