Asset finance and equipment leasing

• Hire purchase — fixed instalments, with ownership arrangements set out in the agreement.
• Finance lease — the company pays to use the asset while the funder retains title; end-of-term arrangements vary.
• Operating lease — shorter term, the funder takes residual value risk, typical for vehicles and IT.
• Refinance or sale and leaseback — raise cash against equipment you already own outright.

Anything durable and identifiable with a resale market: commercial vehicles, plant and machinery, agricultural equipment, catering and refrigeration, printing, CNC and engineering kit, medical and dental equipment, IT hardware. Soft assets with little resale value are harder and priced accordingly.

A provider may assess the asset's value, condition, useful life and resale market alongside the company's trading record, cash flow and ability to make payments. Terms, deposit, pricing and approval are determined by the provider for the specific application.

• Cash preserved for wages, stock and unexpected costs.
• Payments matched to the period the asset earns money for you.
• Capital allowances and VAT treatment vary by structure — check with your accountant.
• Total cost is higher than cash; the trade-off is liquidity, not price.

What is asset finance?

Funding tied to a specific asset — a vehicle, machine or piece of equipment. The provider may consider the asset as security alongside the company's circumstances and ability to make payments.

What is the difference between hire purchase and leasing?

With hire purchase you pay in instalments and own the asset at the end. With a lease you pay to use it for a term and return, extend or upgrade it, which keeps monthly payments lower but leaves no ownership.

Can I raise money against equipment I already own?

Yes — that is refinancing, sometimes called sale and leaseback. The funder buys the unencumbered asset from you, releases the cash, and you pay it back over an agreed term while continuing to use it.

What deposit is needed?

Deposit requirements vary by provider, asset, its resale value and the company's circumstances. The provider will confirm any deposit after assessing the application.

Backed may introduce your company to one or more funding partners whose criteria may fit. Providers determine eligibility, approval, pricing and terms.

Submit a funding enquiry

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