Question 1

What is asset finance and how does it work?

Accepted Answer

Asset finance allows your business to spread the cost of equipment, vehicles, or machinery over time instead of paying the full amount upfront. This preserves your working capital for day-to-day operations. The main options include hire purchase (where you own the asset at the end of the term), finance lease (use the asset with flexible end-of-term options), and operating lease (essentially renting the asset for a fixed period). The asset itself typically serves as security, which often means easier approval than unsecured lending.

Question 2

How quickly can I get approved for asset finance?

Accepted Answer

Indicative quotes within 24 hours of receiving your application. Full approval typically takes 1-5 business days depending on complexity. Straightforward hire purchase agreements on standard vans, plant or equipment can complete the same week. More complex deals — soft assets, used machinery valuations, or sale-and-leaseback — usually take 5-10 working days. We give you a realistic timeline up front based on the specific deal.

Question 3

What is invoice finance and who is it suitable for?

Accepted Answer

Invoice finance releases cash tied up in unpaid invoices, typically advancing 70-90% of the invoice value within 24 hours. It's ideal for B2B businesses with payment terms of 30 days or more who need improved cash flow without taking on traditional debt. Whether you're a manufacturer waiting on payments from retailers, or a contractor with 60-day terms from main contractors, invoice finance can bridge the gap between doing the work and getting paid.

Question 4

Do I need good credit to get asset finance?

Accepted Answer

While a strong credit history helps secure better rates, we work with over 50 lenders offering solutions for various credit profiles. Lenders also consider factors like your business trading history, the value and type of asset being financed, and your current cash flow. We specialise in finding solutions for businesses that may have been declined elsewhere, including those with adverse credit, limited trading history, or complex circumstances.

Question 5

Who does AssetFund work with?

Accepted Answer

AssetFund is a commercial finance broker arranging non-regulated business finance for UK limited companies, partnerships and sole traders. Our team has over 25 years of experience and works with a panel of 50+ lenders covering hire purchase, finance lease, equipment finance, vehicle finance and asset refinance. We do not charge broker fees.

Question 6

What are the typical interest rates for asset finance?

Accepted Answer

Asset finance rates depend on the asset class (new vs used, hard vs soft), term length, deposit, and your trading and credit profile. Strong applicants on standard new plant or vehicles typically see rates from around 7-9% APR. Used equipment, soft assets, newer businesses or adverse credit will see higher rates. We always present the full cost of credit, the monthly payment and the comparison vs alternative structures before you commit.

Question 7

How much can I borrow through asset finance?

Accepted Answer

Asset finance facilities typically range from £5,000 to £10 million or more, depending on the asset and your business circumstances. For larger or more complex requirements, we can structure bespoke facilities through our specialist lender relationships. There's no upper limit for the right opportunity - we've arranged facilities exceeding £20 million for established businesses.

Question 8

What documents do I need to apply for asset finance?

Accepted Answer

For most asset finance applications: last 3 months' business bank statements, your most recent filed accounts or management accounts (depending on company age), photo ID for directors, and details of the asset you're financing — supplier proforma for new equipment, or vehicle reg / V5 for used vehicles. For sale-and-leaseback we'll also need proof of ownership and a recent valuation. Larger deals (£250k+) may need fuller management information.

Question 9

What is the difference between hire purchase and finance lease?

Accepted Answer

With hire purchase, you make regular payments and own the asset outright at the end of the agreement (often after a small final payment). The asset appears on your balance sheet, and you can claim capital allowances. With a finance lease, the finance company owns the asset throughout. You make rental payments and can return, upgrade, or purchase the asset at the end. Lease payments are typically fully tax-deductible as a business expense.

Question 10

Can I get asset finance if my bank has declined me?

Accepted Answer

Yes, absolutely. Banks often have rigid criteria that don't suit every business. We work with over 50 specialist lenders, many of whom take a more flexible approach. They consider factors beyond just credit scores, including the asset value, your trading history, cash flow, and the overall business picture. Many of our clients have previously been declined by their bank but successfully obtained finance through our lender panel.

Question 11

Are there any fees for using AssetFund?

Accepted Answer

No, our service is completely free to use. We're paid a commission by the lender when we successfully introduce a finance application. This means our interests are aligned with yours - we only get paid if we find you a suitable solution that you decide to proceed with. There are no upfront fees, application fees, or hidden charges for our broking service.

Question 12

What types of assets and equipment can be financed?

Accepted Answer

We can arrange finance for virtually any business asset including: commercial vehicles and vans, HGVs and trailers, construction and plant equipment, manufacturing machinery, agricultural equipment, medical and dental equipment, printing and packaging machinery, catering equipment, IT and technology, office furniture and equipment, and many more. If it has business value, there's usually a financing solution available.

Asset Finance in Scottish Borders

Asset Finance Solutions in Scottish Borders

Finance Solutions in Scottish Borders