Asset Finance

The simplest way to get the equipment you need for your business without the big upfront cost.

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What is Asset Finance?

Asset Finance is a type of funding businesses use to get the equipment, machinery and vehicles they need without having to worry about the upfront costs. Businesses can also use Asset Finance to release cash that's tied up in the value of their current assets, this is called Refinancing.

Asset Finance is straightforward in how it works. Typically, the lender (us) will pay for the asset upfront so you don't have to and then you'll pay a recurring fee for a set period of time to use the asset.

Here at Ultimate Finance, we offer the two most widely used types of Asset Finance which are Lease Financing and Hire Purchase (more about these below). 

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1. WHAT IS hire purchase? 

Hire Purchase gives you the option to purchase the asset for a small fee at the end of the agreement.

With Hire Purchase, you generally pay a higher amount upfront and then the remaining cost of the asset is split and repaid at a pre-agreed fixed-rate of interest per month until the end of the agreement.

At the end of the agreement, you will be given the option to purchase the asset outright for a small fee.

 

2. what is lease financing? 

With Lease Financing, the funder (us) would purchase the asset and you would have use of the asset during the lease.

Essentially you would select the asset you need and a finance company (like us) would purchase that asset. You would then pay a series of instalments for the use of the asset.

With our Lease Financing, you pay a lower amount upfront than you would for Hire Purchase. Then the remaining cost of the asset is split and repaid at a pre-agreed fixed-rate of interest per month until the end of the lease. You can also keep the asset at the end of the primary lease period, however, this is subject to an annual rental. 

 

3. WHAT IS BETTER FOR MY BUSINESS? 

Let's take a look at why businesses would choose Hire Purchase or Lease Financing.

Selecting which one is right for your business really comes down to the payment preference.

Businesses will generally opt for Hire Purchase if they would prefer to pay a higher amount upfront. With Hire Purchase, the VAT can generally be claimed back in the normal way*.

Leasing, on the other hand, tends to have a lower upfront cost and the VAT charged with each rental, with the VAT being reclaimed as payments are made*.

*There are different treatments of the products from a tax, VAT and accounting perspective and your advisers will be best placed to let you know how your business will be affected.

We are always here to help so if you are unsure of the best route to take just call us on 0808 274 1672 and we can chat through the options to find out what's best for you.

 

4. What is refinancing?
Refinancing allows you to release cash that's tied up in your existing assets.

Refinancing allows you to release the capital you’ve got tied up in your existing equipment for a variety of purposes. Refinancing can help boost your cashflow and it can be provided on both lease and hire purchase agreements even if you have money still left to pay.

Usually refinancing is worked out as a percentage of the assets equity and if you own the asset without finance you will typically be able to get a higher percentage of the items overall value. If you have an asset that you would like refinanced just get in touch on 0808 274 1672 to find out how we can help.

5. HOW DOES IT WORK? 

Asset Finance helps businesses get the assets they need without the large upfront costs.

Essentially the funder (us) buys the asset which acts as security so you can pay monthly instalments to use/own the asset depending on if you take out a Hire Purchase or Leasing Agreement.

 

6. What are the repayments?
With Asset Finance you don't have to worry about the upfront costs and the repayments are really straightforward.

Repayments are monthly with a pre-agreed fixed-rate of interest. And best of all you get to choose what time frame works best for you from 1 to 5 years and in some cases even longer.

We can also tailor repayments to your needs, so if, for example, your business is seasonal, we can look at a repayment plan where we reduce the payment amount during the quieter months. 

 

7. HOW MUCH CAN I BORROW?

The borrowing amount varies depending on if your company is a Limited Company or Unlimited Company.

If you’re a Limited Company, we can fund assets from £5,000 to £500,000.

If you are an Unlimited Company, we can fund assets from £25,000 to £500,000.

And for any one customer, we can lend up to £1 million. For full product facts see the table below.

 

8. HOW soon can i get it?

It really is as soon as you need it.

Once you contact us we get the ball rolling and can give you a decision within one working day. Generally, we pay the supplier direct and once your contract is in place with us then we can pay them the next working day.

That said, we know that time is sometimes of the essence and we have cases whereby we have been approached in the morning and the business has received their asset by the afternoon. It really can be that quick. 

Get Asset Finance

To get Asset Finance simply complete our form and we’ll get in touch to chat about your needs so we can tailor the quote to you.

We’ll then get a little more information from you, so we can tailor everything to your needs. Once the agreement is in place, payment will be made the next working day upon receipt of signed documentation.

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Why Ultimate Finance?

We’ve been helping businesses achieve their goals for the past 17 years. As an independent business ourselves, we understand financial challenges. We pride ourselves on being competitively priced and fair, but where we come into our own is with our flexibility and personal service.

We’ll assign you a dedicated relationship manager; one point of contact, whatever your needs. Someone who will take the time to get to know you and your business. Someone who understands exactly where you want to take your business and will do everything they can to help you get there. Which may be why our customers come back to us again and again.

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