Information for businesses

What is asset finance?

Asset finance is a loan that is used to obtain equipment. Whenever organisations invest in tangible assets - anything from office quipment to manufacturing plants, from cars to a fleet of aircraft - they usually need an affordable, secure means of finance.

That’s exactly what the asset finance sector is all about. In fact, Asset Finance is the third most common source of finance for businesses, after bank overdrafts and loans. It is also of growing importance in the public sector.

How do I access asset finance?

If you own a business, and are interested in using leasing, you can go to our Business Finance Directory from which you can search for local brokers or lenders who can help you get the equipment you need.

Why use asset finance?

Asset finance is a flexible alternative to a traditional bank loan, providing significant cash flow and tax benefits for businesses looking to purchase a new piece of equipment, vehicle or other fixed assets.

Some facts

• Based on industry figures we estimate that 1000 small businesses take up asset finance each day.
• It helps 750,000 businesses to invest in equipment
• In a recent FLA survey of finance companies the proportion of respondents who expected that provision of finance to SMEs would increase or increase significantly was 42% higher than those who expected it to fall.
• Asset finance accounts for 25% of all fixed capital investment
• £20.8 billion of asset finance was provided to businesses and the public sector last year.

For those not familiar with using asset finance we recommend checking the guidance for small businesses and schools (see the links to the right-hand side of this page).

Remember, you can use the Search button to find relevant information from elsewhere on the site. You may also find the Research and Frequently Asked Questions sections may provide valuable information.