We are accredited under the Coronavirus Business Interruption Loan Scheme (CBILS). Check your eligibility & apply today. Find out more →

  • Asset finance options
  • The 4 types of asset finance and when you should use them

Views from the flipside

If you're looking to invest in new or used equipment for your business then asset finance can help make it more affordable. We take a look at the different types of asset finance and when you should use them for your business.

What is asset finance?

Asset finance is a type of business finance that enables you to confidently acquire the business assets you need to grow and operate both efficiently and effectively within your sector, by spreading the cost of purchase.

It applies to equipment, machinery and vehicles and can also be used to release cash that may be tied up in assets already owned, by means of refinance.

Wholly or largely secured on the assets being financed, business asset finance gives you the flexibility to fund your equipment purchases while also avoiding paying out a lump sum.

This means you can spread the cost over a period of time to protect your cash flow and free up working capital for other areas of your business.

Asset Finance Explained - Free Guide

Different types of asset finance

There are three principal forms of asset based financing to consider, including lease and hire purchase agreements, as well as additional solutions required for specialist purposes.

Type What is it?
1. Finance Lease

A leasing agreement where you can rent the asset over an agreed period, up to a maximum longer term of 5 years.

During the life of the agreement the full value of the asset appears on your balance sheet, and an element of the rental treated as a business expense and passed through the profit and loss account.

You are responsible for maintaining and insuring the asset during the life of the agreement.

We maintain ownership until final payment. At the end of the lease you have 3 options:

2. Hire Purchase

Hire Purchase (HP) allows you to benefit from the immediate use of the asset over an agreed term, while repaying the cost in instalments. HP enables you to acquire the equipment you need by White Oak UK purchasing the equipment on your behalf.

During the life of the agreement the full value of the asset appears on your balance sheet and an element of the rental treated as a business expense and passed through the profit and loss account.

We maintain ownership until the final payment is made and at the end of the agreement you can choose to keep the asset or return it to us.

3. Operating Lease

Operating Leases are a popular option for schools and colleges as a means of supporting on-going equipment investment.

This facility is suitable if you will not need the equipment for its entire working life. Payments appear on your profit and loss account and as the asset is only kept for a defined period, the value of the asset and corresponding finance liability does not appear on your balance sheet.

The finance company will take the asset back at the end of the agreement.

Find out more about our Operating Leases here.

4. Specialist Purposes

There are several specialist purposes for asset finance for specific equipment such as Green Energy (e.g. biomass boiler finance), farming input loans and vehicle leasing.

When looking for finance for these purposes, it is important to choose a provider with expertise in these sectors.

In addition to business asset finance, occasions arise where you only require a short term repayment period. In these situations, a loan product is needed. Loan products can be tailored to meet your requirements with terms from 3 to 12 months.

New call-to-action

When should you consider asset finance?

Put simply, you should consider asset finance as part of any process you have for purchasing equipment.

By considering the benefits and capabilities of asset finance early, you can demonstrate how it can support your purchasing plans and it can also influence the specification of equipment you ultimately purchase.

Buyers will inevitably seek out a solution that provides value at a price they are willing to pay; by using asset finance to spread the cost you may be able to afford a higher specification of equipment than you first thought.

Considering asset finance early in the buying cycle delivers greater control by breaking down the total cost of purchase into manageable payments. Doing this increases your ability to tailor a solution to meet your business’s individual requirements.

What can you use Asset Finance for?

We don’t choose the assets we fund - you do. We simply provide the finance you need. We've financed assets ranging from a ninja assault course to an 85-year-old coffee roasting machine.

More traditional examples of equipment we can fund include:

  • Air Conditioning
  • Amusement & Gaming
  • Audio Visual
  • Barware
  • Beauty Equipment
  • Beverage
  • Buffet Display
  • Cooking
  • Epos & Cash Handling
  • Fabrication & Storage
  • Food Handling
  • Food Preparation
  • Food Service
  • Furniture, Fixtures & Fittings
  • Gym Equipment
  • Information Technology
  • Laundry
  • Lighting
  • Refrigeration Refurbishments
  • Security Systems
  • Soft Play
  • Software
  • Telecommunications
  • Vending
  • Warewashing
  • Waste Management

Platinum Trusted Service for Asset Finance

What next?

At White Oak UK, we’ve cut the red tape from our business to offer quick, simple and straightforward asset finance solutions, so you can work more efficiently and effectively.

Talk to us today on 0330 053 6163 or request a call back from our business asset finance specialists to discuss your options.

New Call-to-action

By Ian Cushion
Find me on:

Why choose White Oak UK?

  • No red tape, so you can receive funds in as little as 24 hours
  • We accept 4 out of every 5 applications
  • Apply quickly and easily with E-sign loan documents
  • You’ll always speak to the same person
  • Free up cash flow for other areas of your business
  • Tailored finance agreements to suit your specific needs

Views from the flipside

What our customers say

We could not have been happier. Banks as usual were a nightmare - they took over six weeks to eventually refuse for vague reasons unexplained. White Oak UK were professional, helpful, friendly, and best of all, fast.

credit-awards2018 Winner - Flintshire Business Awards leasing-life-award2018 leasingworld2018-1 SME Awards - Alternative Funder of the YearInnovator of the Year 2016Business Comparison Asset Finance Lender Award Growing Business Award - Amazon