What is business asset financing?

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What is Contract Hire?

Contract hire is an agreement used by businesses looking to maximise their growth by hiring assets needed to move the business forward, without paying nearly as much to buy the asset.

What is an asset?

An asset is almost anything owned by the business, regarded as having value. Some examples of business assets are:

Example Business
- Haulage firm
- Manufacturer
- Catering company
- Construction business

Example Asset:
- Vehicles
- Machinery
- Refrigeration
- Load Transporters

Who is it for?

Business asset finance is for businesses big and small, of all industries, who are particularly interested in maximising their business growth.

Which industries can benefit?

Business asset finance can benefit any business that has a growth strategy in place. It can be used to acquire a new asset or for a quick cash release. Industries that could benefit include:

  • Construction
  • Manufacturing
  • Transportation
  • Engineering
  • Healthcare
  • Professional services
  • Printing
  • Plant Hire

What types of business asset finance are there?

Hire purchase - Business hire purchase, also known as Business HP, is a type of financing for businesses that allows a firm to possess and control an asset before it is paid for in full.

  • Control an asset before it is paid in full
  • Asset is used to support business growth
  • When contract is complete, asset is transferred into businesses possession

Asset refinancing -  Business asset refinancing is a secured form of lending used to raise funds against an existing asset purchased by a business in full, or sometimes on existing equity on an asset only partially purchased.

  • Use an existing asset to release capital
  • Capital is used to support business growth
  • When the contract is complete, the asset is no longer used as security by lender

Equipment leasing - A business lease finance is a way of acquiring business assets where they remain the property of the finance company. So it is simply a way of loaning equipment for your business over a contracted period.

  • Loan an asset
  • Asset is used to support business growth
  • When the contract is complete, equipment is returned to provider or a new contract can be agreed

How can it be used?

Business asset finance can be used on new and second-hand assets, anything from basic office equipment to vehicles and machinery. These assets are acquired to then support business growth or when refinancing an asset the capital is then used to support the business.

  • Lease new equipment to improve daily ops
  • Buy new machinery to maximise potential
  • Release cash to invest in new stock
  • Release funds to purchase new equipment
  • Finance new asset to boost turnover

How can I benefit from business asset finance?

Maximise your businesses' growth using business asset finance by investing in a new asset to improve daily operations and increase your businesses turnover or take capital against an existing asset to support the financing of a new asset, stock or the refurbishment your business needs to move it forward.

Pros and Cons

  • Flexible alternative to a bank loan
  • Usually have fixed rates for easy budgeting
  • Less risk - loss of equipment rather than penalty charges
  • Generally more expensive than buying an asset outright
  • Often requires a deposit or advance payment
  • Asset is used as collateral and risks being removed from businesses control

Get in touch today and talk about our contract hire finance option with our finance specialists!

Call 03451 303030 and let's talk options.

OR Request a callback. We can help you secure assets from £7.5k up to £500k.

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We're an SME too. We get the difference securing finance can make to your business.
Thank you for such excellent service Holmesdale! Our business set up is complicated but Daryl took the time to understand it’s complexities and managed to secure us a £250k credit line which has really helped us to expand – couldn’t recommend more highly
International Haulage Business

We didn’t think it would be possible to fund the equipment we had as our bank had told us so, we were recommended to try Holmesdale and we wish we’d tried earlier!

Bodyshop Equipment

Precise and unambiguous advice from experienced professionals. I felt in safe hands from the 1st call and will definitely be using Holmesdale again.

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£35k of assets acquired to keep the business running smootly

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