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Asset finance

If you can see the potential for growth in your business, but there’s not enough readily available working capital to pursue the opportunities, where do you turn?

What is asset finance?

A flexible approach to funding, asset finance gives your business access to the equipment, vehicles, plant and technology it needs to perform and grow, without compromising cash flow.

It can be used for both new and second-hand assets, or as a mechanism for releasing the value from those you already own.

Over the past few years, asset finance has become the fastest growing finance option for businesses of all sizes, across all industries.

Asset finance is a collective term for a range of funding solutions that include:

Types of asset finance we offer

    Spread the cost over time 

    Hire Purchase enables you to acquire an asset while paying for it in instalments over an agreed timescale – the term. At the end of the term, you have the option to purchase the asset outright.

    It lets you spread the cost of your investment over the life of the asset, making it easier to budget. Hire Purchase is particularly suitable for acquiring vehicles, machinery, construction and commercial equipment with a resell value.

    Benefits of Hire Purchase

    • More time to repay - Spread the cost over the life of the asset
    • Seasonality - We can structure repayments to take account of seasonal fluctuations in your cash flow
    • Keep control - You are the owner of the asset for tax purposes and can normally claim capital allowances
    • Tax efficient - You can offset your hire purchase interest and charges against pre-tax profits
    • Reclaim VAT

    When you need a cash injection

    Refinancing (Capital Release) is a quick way to access the cash from your assets on your existing balance sheet and use that value elsewhere within your business – for example, to fund a deposit on new equipment or ease cash flow.

    Sale and HP Back is a form of refinance that can be used against most types of equipment, making it suitable for companies of all sizes, including sole traders. It works by us purchasing the asset and financing it back to you. Repayments are calculated in line with the income stream that will be generated by the asset and at the end of the refinance term, you own the asset.

    This option applies whether you already own the asset or are using it under a finance deal with another provider.

    Benefits of Refinance / Capital Release

    • Efficiency - Uninterrupted use of the asset
    • Spread the cost further - We can take over the finance agreement you have with another provider and extend the term
    • Choice - Give your business a cash injection or use the money to buy other assets that may not be accessible through hire purchase or leasing agreements
    • Make fast decisions - Releasing capital can help you make faster decisions when negotiating business contracts

    User benefits without the ties of ownership

    Our Finance Lease arrangements let you use the equipment you need without having to buy it outright.

    You pay us rent for the full use of it. The rental period is flexible and can be tailored to your needs and cash flow. During this period, you will pay us the full cost of the asset, including interest. Then, when you reach the end of the primary lease term you can choose to:

    • Continue to use the asset by entering a secondary rental period
    • Sell the asset and keep a portion of the income from the sale
    • Return it to us

    Benefits of Finance Lease

    • Efficiency - Uninterrupted use of the asset
    • Spread the cost further - We can take over the finance agreement you have with another provider and extend the term
    • Choice - Give your business a cash injection or use the money to buy other assets that may not be accessible through hire purchase or leasing agreements

    Keep your options open

    Similar to a Finance Lease, an Operating Lease allows you to rent the asset from us while you need it. The key difference between the two is that an Operating Lease is only for part of the asset’s useful life. This means you pay a reduced rental because the cost is based on the difference between the asset’s original purchase price and its residual value at the end of the agreement.

    You get full use of the asset for as long as you need it, without the burden of responsibility of disposing of it or recouping its residual value.

    Benefits of Operating Lease

    • Low initial outlay - Quick access to the asset you need without a heavy upfront investment
    • Freedom - Full use of the asset without having to buy it outright
    • Flexibility - Option to re-rent, purchase or return the asset at the end of the term
    • Pay less - Rental cost is reduced as it is based on a percentage of the original capital cost
    • Off balance sheet funding
    • Reduce costs - Reclaim VAT on rentals

    Why choose Close Brothers for asset finance?

    Just as no two businesses are the same, neither are asset finance providers. With us, it’s the combination of our people, products and principles that make the difference.

    Our people

    Our people

    As you would expect, our people are experts in asset finance. But they also have extensive knowledge of your industry. This experience means our team really understand the challenges their customers face. You can rely on them to be a consistent and proactive point of contact, on hand throughout the life of the finance contract and beyond, building lasting relationships.

    Our products

    Our products

    Our straightforward products and services are designed to promote business investment and growth. We don’t provide standard packages, but consider all relevant aspects of your business and then create tailor-made, flexible repayment schedules to suit. With minimal capital outlay, our asset finance enables you to invest in new equipment or refinance existing assets to make them work harder for you.

    Our principles

    Our principles

    We are committed to helping our customers make the right financial decisions. We base our lending decisions on the overall health and plans for the business – not just a credit rating. But we’re careful lenders too, a decision that fails to take account of risk factors and wider market forces is not in anyone’s interest. With local teams throughout the UK and Ireland, we can respond quickly to your requests for information and lending decisions. In fact, we aim to give you a decision within days, sometimes hours.

    Industry specialists

    The individual customer is at the heart of what we do, but our lending decisions are underpinned by our industry expertise.

    Applying our expertise

    Our focus on asset finance for SMEs stems from our belief that they are the engine that drives the UK economy. From innovation to job creation, it’s the industry with the most potential to create growth.

    Funding ambition

    Our teams’ in-depth knowledge of their industry ensures they see the big picture. This means that if you’re seeking asset finance to support new product development or diversification, they will endeavour to you help you, through all market conditions.