Asset Finance
Asset Finance to Unlock Business Growth with Giles Finance
Asset financing is a powerful financial tool that allows businesses to leverage their existing assets to secure loans or funding. These assets may include stock, plant, machinery, balance sheet assets, short-term investments, inventory, and accounts receivable. By using these business assets as security, asset financing provides an effective solution for addressing cash flow challenges and ensuring smooth business operations.
Asset finance revolves around offering a security interest in the company’s assets to the lender in exchange for the required funds. This approach is ideal for businesses that need to unlock the cash value of their existing assets or acquire fixed infrastructure assets to expand their operations. The flexibility of asset financing makes it a preferred choice for businesses seeking to address immediate financial needs or invest in long-term growth opportunities.
Asset finance is particularly beneficial for companies looking to maximize their cash flow while minimizing disruptions to their day-to-day operations. By borrowing against assets such as stock, plant, and machinery, businesses can quickly access the capital they need without sacrificing future growth. This financial strategy is especially advantageous for companies operating in industries that require regular reinvestment in equipment or inventory.
At Giles Finance, we are specialists in providing tailored asset finance solutions to businesses of all sizes. Our team works closely with a carefully selected panel of funders and lenders to ensure that our clients receive fast and efficient lending decisions. This is critical for maintaining cash flow and meeting the financial demands of running a business.
Our asset finance services are designed to cater to the unique needs of each client. Whether you need funding for stock, machinery, or infrastructure investments, Giles Finance ensures that the asset finance process is seamless and tailored to your specific requirements. We understand that timely access to funds is essential for businesses, which is why we prioritize quick lending decisions through our trusted network of funders.
One of the key advantages of asset finance is its ability to unlock the value of dormant assets. Many businesses have valuable assets that are underutilized or not fully leveraged. Asset financing allows these businesses to convert these assets into usable capital, enabling them to reinvest in their operations, drive growth, and achieve long-term success.
By choosing Giles Finance for your asset finance needs, you gain access to a team of professionals dedicated to finding the best solutions for your business. We pride ourselves on offering a customer-centric approach, ensuring that every client receives personalized service and financing options that align with their goals.
Asset financing is more than just a financial solution; it is a strategic approach to managing your business’s financial health. Whether you are addressing cash flow shortages, acquiring new equipment, or funding expansion projects, asset finance provides the flexibility and efficiency needed to succeed.
If you are ready to unlock the potential of your business assets, Giles Finance is here to help. Our expertise in asset finance, combined with our strong relationships with lenders, ensures that your business can access the funds it needs to thrive. Contact Giles Finance today and discover how asset finance can transform your business.
Giles Finance – Your Partner in Asset Financing Success.
Where we advise: we arrange asset finance for clients across England and Wales, working from our offices in Willenhall, Dagenham, Rainham and Putney. See areas we cover for the postcodes each office serves.
Asset finance options compared — which structure fits your business (October 2026)
Asset finance is not one product. The right structure depends on whether you want to own the asset at the end, how you want it to sit on your balance sheet, and how you account for VAT and tax allowances. The table below sets out the five structures we arrange most often.
| Structure | Who owns the asset | Typical deposit | Typical term | Best suited to |
|---|---|---|---|---|
| Hire purchase (HP) | You, once the final payment is made | 0% – 20% plus VAT up front | 1 – 7 years | Vehicles, plant and machinery you intend to keep; qualifies for capital allowances from day one |
| Finance lease | The funder; you use it for most of its working life | Usually 1 – 3 rentals in advance | 2 – 7 years | Businesses that want low upfront cost and to spread VAT across the rentals |
| Operating lease / contract hire | The funder; asset returned at the end | Usually 1 – 6 rentals in advance | 1 – 5 years | Vehicles and IT that are replaced on a cycle, with residual-value risk left with the funder |
| Refinance (sale and HP back) | You, after the funder buys and re-finances it | None — releases cash | 1 – 5 years | Raising working capital against equipment you already own outright |
| Asset-based lending (ABL) | You — the funder takes security over assets and receivables | None | Revolving, reviewed annually | Larger firms combining plant, stock and invoices into a single revolving facility |
Pricing on hard assets such as vehicles, construction plant, agricultural machinery and manufacturing equipment commonly starts around 6% to 8% a year for established, profitable businesses, rising for soft assets (software, fit-out, specialist tooling), start-ups and weaker credit. Hard assets with a strong resale market also attract the lowest deposits.
Indicative only, correct as at 2 October 2026. Terms depend on the asset, its age and resale value, and the funder’s assessment of your business.
Worked example: financing a £120,000 machine on hire purchase
A VAT-registered engineering company in the West Midlands buys a new CNC machining centre for £120,000 plus VAT. It pays a 10% deposit and finances the balance on hire purchase over five years at an illustrative 8.5% a year.
| Machine cost (excluding VAT) | £120,000 |
| Deposit (10%) | £12,000 |
| VAT at 20% — paid up front, reclaimed on the next VAT return | £24,000 |
| Amount financed | £108,000 |
| Monthly payment over 60 months at 8.5% | c. £2,216 |
| Total interest over the term | c. £24,950 |
| Tax relief | Full cost eligible for the Annual Investment Allowance (up to £1 million a year) in the year of purchase, because on HP the business is treated as the owner |
The point of the example is cash flow: instead of finding £144,000 at once, the company commits £36,000 on day one (half of which comes back through the VAT return) and pays for the machine out of the extra output it generates. On a finance lease the VAT would instead be charged on each rental, which suits businesses that are not VAT-registered or are tight on cash at the outset.
Figures are illustrative and rounded, assume a fixed rate for the full term and exclude documentation and option-to-purchase fees. Tax treatment depends on your circumstances — take advice from your accountant. This is not an offer of finance.
What funders will ask for
- A supplier quotation or invoice showing the asset, its specification, serial number (if used) and price.
- Two years of filed accounts and recent management accounts; for larger facilities, a cash-flow forecast showing how the asset pays for itself.
- Three months of business bank statements.
- Director details for identity and credit checks, and in some cases a personal guarantee.
- For used assets: age, hours or mileage, and confirmation there is no existing finance on it (a HPI-style check is run).
How it works with Giles Finance
- Same day: we confirm which structure fits and which funders specialise in your asset type.
- 24–48 hours: credit decision on most standard applications up to £250,000.
- 2–5 working days: documents signed electronically, funder pays the supplier directly, and the asset is delivered.
If you are buying premises at the same time, see our commercial mortgage service; for wider working capital, our corporate banking and company loans; and to release cash tied up in unpaid invoices, invoice factoring and discounting.
Last reviewed: 2 October 2026 by Dennis Galley, Operations Director & Compliance Officer at Giles Finance & Consultancy Services, authorised and regulated by the Financial Conduct Authority (FRN 726857). Asset finance arranged for limited companies and larger partnerships is generally not regulated by the FCA. Where an agreement is with a sole trader or a partnership of two or three partners and is for £25,000 or less, it may be regulated under the Consumer Credit Act 1974 and we will tell you before you proceed. Your asset may be repossessed if you do not keep up repayments.
Our asset finance desk is ready to take your call. Call now on 0208 088 22 11.
Speak to an asset finance specialist
Asset Finance FAQ's
What is asset finance used for?
Asset finance allows a business to spread the cost of purchasing plant, machinery, vehicles or equipment over time, rather than paying the full amount upfront.
What is the difference between hire purchase and leasing?
With hire purchase you own the asset at the end of the agreement once all payments are made; with leasing you typically return, renew or extend rather than take ownership.
Can a start-up business get asset finance?
It is possible, though terms and deposit requirements are usually stricter for newer businesses; established trading history generally secures more competitive rates.
What assets can be financed?
Common examples include manufacturing equipment, commercial vehicles, construction plant, catering equipment and IT infrastructure.
How much deposit is required for asset finance?
Deposits typically range from 0% to 20% of the asset value depending on the lender, the asset type and the strength of the applicant's trading history.
Can asset finance be used to refinance assets I already own?
Yes. Refinancing existing, unencumbered assets can release working capital tied up in equipment or machinery your business already owns.
How long are typical asset finance agreements?
Terms usually run from 12 months up to 7 years, with the length generally matched to the useful working life of the asset being financed.
Will asset finance affect my business's other borrowing?
Asset finance is usually secured against the asset itself rather than other business assets, so it can often sit alongside existing facilities without directly restricting them, though lenders will still assess overall affordability.
What happens at the end of a leasing agreement?
Depending on the agreement, you may be able to return the asset, extend the lease, or in some cases purchase it for a nominal fee; the exact options depend on the lease type.
Is asset finance available for used or second-hand equipment?
Yes, many lenders will finance good-quality used equipment, though the age, condition and expected remaining working life of the asset will affect the terms offered.
Do you arrange asset finance for businesses across England?
Yes. Hire purchase, finance lease and refinance facilities are arranged for businesses throughout England and Wales, including London, Birmingham, Manchester, Leeds, Bristol and Newcastle, covering vehicles, plant, machinery and equipment.
Which assets can be funded with asset finance?
Commercial vehicles, construction plant, manufacturing machinery, agricultural equipment, technology and office fit-outs can all be funded. Existing assets can also be refinanced to release working capital into the business.