What is asset and equipment finance?
Asset finance can help a business acquire vehicles, machinery, technology or equipment without paying the full purchase price from available cash at the outset.
The finance is normally linked to an identifiable asset. The lender will consider the equipment, supplier, useful life, value, deposit, business performance and proposed repayment term.
Shadowfax Funding Solutions compares suitable structures across its lender panel and explains the ownership position, payment profile, security and end-of-term treatment before you proceed.
Types of asset finance
Hire Purchase
The cost is spread over an agreed term, with ownership generally transferring after the final payment and any applicable option fee.
Finance Lease
The business rents the asset for an agreed period and makes scheduled payments. Ownership remains with the finance provider.
Operating Lease
Use of an asset is funded for a defined period, potentially with payments reflecting its expected value at the end of the agreement.
Asset Refinance
An eligible business may raise capital against equipment it already owns, subject to value, title and lender criteria.
What equipment may be funded?
Plant and Machinery
Production lines, machine tools, engineering equipment, construction plant and specialist industrial assets.
Vehicles and Transport
Vans, trucks, trailers, buses, agricultural vehicles and other commercial transport assets.
Technology and Business Equipment
IT hardware, software-linked equipment, telecoms, office equipment, medical technology and renewable-energy assets.
How asset finance may preserve cash
A manufacturer plans to purchase a new machine costing £120,000. Rather than paying the full amount from working capital, it considers an asset-finance facility with an upfront contribution and scheduled repayments.
The lender would assess the business, supplier, asset, useful life and proposed term. Actual deposit, payments, rate and fees would be confirmed in a formal offer.
Important: This is an illustration, not a quotation or tax recommendation.
What to weigh up before proceeding
Ownership and End of Term
Understand who owns the asset during the agreement and what options, payments or return conditions apply at the end.
Total Cost and Cash Flow
Compare deposit, payment profile, rate, fees, balloon payments and the effect on available working capital.
Asset Suitability
The finance term should make commercial sense relative to the asset's expected use, value and productive life.
How Shadowfax approaches an asset-finance review
Requirement
We establish the asset, supplier, cost, timing and intended use.
Business Review
We consider affordability, trading performance, deposit and existing commitments.
Structure
We compare hire purchase, leasing, refinance and relevant alternatives.
Market Comparison
We approach lenders whose asset appetite and criteria fit the proposal.
Completion Support
We help coordinate quotations, information, due diligence and documentation.
Compare asset-finance options
Asset and Equipment Finance FAQs
What assets can be financed?
Subject to lender criteria, funding may be available for vehicles, plant, machinery, manufacturing equipment, technology, office equipment and other identifiable business assets.
What is the difference between hire purchase and leasing?
Hire purchase is generally structured towards ownership after the final payment and any applicable option fee. Leasing provides use of the asset for an agreed period, with ownership and end-of-term treatment depending on the agreement.
Can used equipment be financed?
Potentially. Lenders may consider the age, condition, value, useful life, supplier and intended use of the equipment.
Can an existing asset release working capital?
Asset refinance may allow an eligible business to raise capital against equipment it already owns, subject to valuation, ownership and lender criteria.
Is a deposit required?
Deposit requirements vary according to the lender, asset, applicant and transaction. Some structures may require an upfront contribution.
How long can the agreement run?
The term depends on the asset type, expected useful life, transaction size and lender policy.
What information will lenders request?
Requirements vary, but may include accounts, bank statements, management information, supplier quotations, asset details and an explanation of how the equipment will be used.
How is Shadowfax Funding Solutions paid?
Any broker fees and lender commission arrangements will be explained before you proceed.
Planning an equipment or vehicle purchase?
We can help you compare hire purchase, leasing, asset refinance and alternative funding routes around the needs of the business and the asset.
Funding is subject to status, lender criteria, due diligence and final approval. Shadowfax Funding Solutions Limited acts as a commercial finance broker, not a lender. Asset ownership, security, tax treatment, terms and charges vary by provider and agreement. Seek professional tax advice where appropriate.