Asset finance & insurance

What is asset finance?

Asset finance is a type of lending used to fund the purchase of business assets such as vehicles, machinery, and equipment.

The loan is typically secured against the asset itself, which allows lenders to offer faster approvals and more flexible structures compared to unsecured lending.

Instead of paying the full cost upfront, the business repays the loan over time through structured repayments. This helps preserve cash flow and allows the business to continue operating without tying up capital.

Choosing the right asset finance structure

There are several types of asset finance, and the right option depends on how the business operates.

A chattel mortgage is commonly used when the business wants ownership of the asset from the start. This structure is often used for vehicles and equipment and may allow for depreciation benefits depending on your situation.

A finance lease allows the lender to retain ownership while the business uses the asset. This can provide flexibility depending on how the asset is used and how repayments are structured.

Hire purchase is another option where ownership transfers at the end of the term. This can be suitable for businesses that want a clear path to ownership while managing repayments over time.

Each structure has different implications for cash flow, ownership, and accounting, which is why choosing the right one matters.

What can be financed?

Asset finance can be used across a wide range of industries and asset types.

This includes:

• Vehicles and transport fleets
• Construction and earthmoving equipment
• Manufacturing machinery
• Medical and specialised equipment
• Office and business fit outs

The key requirement is that the asset has a clear commercial purpose and value.

Insurance and protecting your assets

Alongside financing, protecting the asset is just as important.

Insurance can help cover risks such as damage, loss, or business interruption. Depending on the asset and industry, this can be a critical part of managing risk and ensuring the business continues to operate smoothly.

Why use a broker for asset finance

Different lenders have different pricing, asset preferences, and approval processes.

We compare multiple lenders and structures to ensure the finance aligns with how your business operates. This includes identifying lenders that are suited to your industry, asset type, and borrowing profile.

Looking for ways to fund that new car or truck?

If you’re looking to fund vehicles or equipment for your business, speak with Peter Marcs Finance and explore asset finance options that fit your needs.