What is Asset Finance?

Helping Businesses Acquire Equipment, Vehicles & Machinery

Asset finance is a business funding solution that allows companies and self-employed individuals to obtain essential equipment, vehicles, or machinery without paying the full cost upfront. This form of finance is commonly used by businesses that want to maintain cash flow while acquiring income-generating assets needed for operations or expansion.

  • Secure finance for vehicles, machinery, tools, and office equipment.
  • Repay over fixed terms while using the asset in your business.
  • Preserve working capital and manage cash flow effectively.
  • Available to small businesses, sole traders, and self-employed operators.
  • Options include leases, hire purchase, and chattel mortgages.
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Types of Asset Finance

Chattel Mortgage

  • Common for business vehicle finance.
  • Asset is owned by the borrower from day one.
  • Lender takes a mortgage over the asset as security.
  • GST, depreciation, and interest may be tax-deductible (seek tax advice).

Finance Lease

  • Lender owns the asset and leases it to the business.
  • Business pays fixed monthly lease payments.
  • At the end of the term, the asset can be purchased or returned.
  • Suited for short-term use or rapidly depreciating assets.

Hire Purchase

  • Finance option where the asset is hired with intent to buy.
  • Ownership transfers to the business after final payment.
  • Fixed interest rates and repayment terms.
  • Tax and accounting benefits may apply (consult your accountant).

Operating Lease

  • Shorter-term lease option where the lender retains ownership.
  • Asset is returned at the end of the lease.
  • No option to purchase, ideal for temporary equipment needs.
  • Does not appear on the balance sheet as an owned asset.

Benefits of Asset Finance

  • Conserves working capital for other business expenses.
  • Improves cash flow and budgeting with predictable payments.
  • Fast approval process compared to traditional loans.
  • Access to the latest equipment without major upfront costs.
  • May provide tax advantages depending on structure.

Who Can Use Asset Finance?

  • Small to medium businesses needing vehicles or equipment.
  • Sole traders and self-employed individuals looking to scale.
  • Established companies replacing or upgrading assets.
  • Startups looking to preserve capital and expand operations.
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