Asset finance cost comparison
Loan amount: £50,000
- Loan term: 1 year
- Interest rate: 22%
- Monthly repayment: £4,633
- Total interest: £5,595
Loan amount: £50,000
- Loan term: 1 year
- Interest rate: 36%
- Monthly repayment: £4,903
- Total interest: £8,831
If you’re looking to purchase equipment or another asset for your business, asset finance can help make it more affordable. Use the table below to compare competitive asset finance loans based on loan type, amount and term.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Asset financing is a form of business loan that is used to cover the cost of a business asset, and which is secured against the asset itself.
Most commonly, it allows your small or medium-sized business to obtain the most up-to-date equipment you need (vehicles, office equipment or tech), with little-to-no upfront payment. Instead, you’ll make smaller regular payments over a sustained period of time. Overall, you’ll pay more than it costs to buy the item outright. Still, it’s a useful option for businesses without the immediate funds to make large one-off purchases.
There are a number of advantages to using asset financing over traditional bank loans, although it’s certainly not the best choice for every business. Here’s a detailed guide to this type of financing, with useful pointers on how to find the best deal available to you.
The following are the three main types of asset finance:
The lender retains ownership of the asset throughout the course of the agreement. Essentially, you’re renting the equipment instead of buying it. These deals may be more suitable for highly expensive machinery, vehicles or property. If you only need assets for a short time period, this could be the way to go.
The lender retains ownership of the asset until the final payment is made. Here, your regular payments cover the cost of purchasing the item, plus interest. These deals are more suitable for basic office equipment or technology. If you’d ultimately like to own the assets you’re paying for, this is the option to choose.
Where you already own assets outright, this option lets you unlock their value to spend elsewhere. You’ll make regular payments to effectively buy back the assets.
Here are the main factors to bear in mind when comparing asset finance deals:
Usually, you can apply for asset financing deals via the lender’s website. The process only takes a few minutes, provided you have the necessary details to hand.
You’ll need to provide some basic information to identify your business, including your company type, business address and limited company number.
It may also be necessary to submit financial details, including VAT returns and bank statements. The lender will then complete a credit check on your business. Your business credit score is based on your previous borrowing history and helps the lender to evaluate whether you’re a risky prospect to lend money to. Your eligibility for the best deals will be based on this score.
You’ll typically be given an instant decision on your application. However, with some lenders, this may take up to three business days.
If your business needs quick access to the best equipment, but you don’t have the capital to buy it outright, asset finance can be a useful tool. For companies with highly irregular cash flows or bad credit, it can offer access to finance when traditional bank loans may not be an option.
This type of savings account can save you from a lot of financial stress and anxiety.
Pay 30 or even 60 days later when toy shopping by choosing Klarna at the checkout of your favourite online stores.
Discover how opening a business bank account could benefit your e-commerce business.
Is Monzo’s app-only current account the right option for you? Read our review to get the low-down on all of the features of the account, its card and the app.
Learn about private banking with Yorkshire Bank to see if it’s right for you.
Learn about private banking with Metro Bank to see if it’s right for you.
Discover what the HSBC Premier current account has to offer to see if it’s right for you.
What affects the value of Ethereum (ETH) and how might the price of ETH fluctuate in the year ahead? Find out in this comprehensive guide.
Sugi assessed your existing investments to find out how ethical they are. We’ve reviewed its features, fees and pros and cons.
Your guide to the factors affecting bitcoin’s value and what to look for when forecasting bitcoin price changes in the weeks and months ahead.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.