Unlocking Growth: A Comprehensive Guide to Asset Finance and Asset-Based Lending
In today’s business landscape, asset finance is a great way to help your company grow, enabling access to vital resources without compromising on cash flow.
Spreading the cost of equipment, machinery, vehicles or office equipment can help facilitate further growth without a substantial initial outlay – ideal for startups or businesses with limited working capital.
When investment is necessary but funding is difficult, asset finance can be the perfect solution. In order to secure the right asset finance arrangement for your specific circumstances, you’ll need an experienced broker to guide you through. That’s where Anglo Scottish comes in.
Contact us to discuss your requirements.
Need help? Call us on 0191 410 4776
Understanding Asset Finance
Asset finance, or asset-based lending, refers to a finance agreement by which a business or individual spreads the cost of an asset over a pre-agreed period of time.
It offers a more flexible funding solution to facilitate business growth, and can be used to fund both new and used assets. Asset finance is therefore particularly helpful for startups, where working capital might be limited. However, with various different forms of asset finance available, businesses of any size can make use of an asset-based finance agreement.
Asset finance can be used to fund both hard and soft assets:
A hard asset usually refers to a tangible asset or resource of significant value. This may mean vehicles, plant equipment, machinery or even buildings themselves.
Soft assets are usually of less significance than hard assets and are differentiated from hard assets in that they have little-to-no resale value. Examples of commonly financed soft assets might include office equipment and furniture, electronics, computer hardware or software.
The power of asset-based lending
In most cases, asset finance is a more flexible option for a business to explore than a traditional bank loan, particularly if your finance is secured via a reliable broker.
Third-party lenders are likely to have more varied lending criteria, meaning an application for asset finance may be more likely to be accepted than an application for a bank loan.
With asset finance, the lender will secure your loan against the asset itself, whilst your eligibility for a bank loan is likely to be based on your business’s creditworthiness.
Asset finance can therefore be a helpful alternative – and can usually be processed more quickly than a bank loan. So, if you need access to an asset quickly, asset-based lending could be the perfect choice.
Choosing the right asset finance solution
Choosing the right asset finance solution can be challenging. There are a plethora of different options available, so it’s crucial to choose a solution which aligns with your company’s specific needs and growth goals.
Flexible agreements, which incorporate refinancing or contract hire, as well as other specific terms and conditions, may be worth exploring.
At Anglo Scottish, we offer a number of different asset finance agreements:
Hire purchase is a type of finance which allows your business to spread the cost of a vehicle or asset. Our hire purchase arrangements spread the cost over the life of the asset, making it easier for you to budget. Once the agreement is complete, you’ll own the asset outright.
Contract hire is a popular way of financing cars and light commercial vehicles. It allows you to use the vehicles for a set period in return for a fixed monthly payment. You do not own the vehicle and at the end of the term, the vehicle is returned to the leasing company.
An operating lease is an agreement which allows your business to use an asset for a fixed period without actually owning it. An operating lease is a form of “off-balance sheet financing,” which allows businesses to use assets for a fixed period without the responsibilities of ownership.
A finance lease is similar to an operating lease in that you can use and benefit from an asset without ownership. However, unlike an operating lease, a finance lease will appear on the balance sheet of your business.
Vendor finance is a division of asset finance which is tailored to businesses which sell vehicles, machinery, and equipment to other businesses. Vendor finance provides a facility for businesses to offer affordable asset finance to their customers.
Sectors We Work InView All Sectors
We provide asset finance agreements tailored to a range of sectors, including:
Coffee & Vending Machine Finance
Boost team well being and level up your business with coffee machine finance and vending machine finance from Anglo Scottish.
IT Equipment Finance
Utilise IT equipment finance at Anglo Scottish and level up your business’s hardware, software or security to protect your growth. Learn more:
LED Lighting Finance
LED lighting finance from Anglo-Scottish can help your business switch to energy-saving LED bulbs. Finance your way to a more sustainable business.
Commercial Furniture Finance
Anglo Scottish's commercial furniture finance is the perfect way to level up your business’s facilities and grow sustainably whilst maintaining your cash flow.
Anglo Scottish's scaffolding finance arrangements can support a construction business to grow, take on a wider range of projects and combat cash flow gaps.
Accessing new equipment and services is vital for schools, universities, and academies, at Anglo Scottish, we want to help you achieve this with cost-effective Education Finance.
Transport and Private Hire Finance
Whatever your requirements – whether you need to finance a coach fleet or simply fund a small bus – we can help you acquire the vehicle and organise the coach leasing or funding.
At Anglo Scottish, we’ve been working with the haulage and transport sectors for many years and have extensive experience and market knowledge in the area of truck and HGV finance.
Plant and Manufacturing Finance
At Anglo Scottish, we have decades of experience working closely with businesses in the Plant and manufacturing sector and understand their complex needs.
Office, Telecoms, IT and Technology Finance
At Anglo Scottish, we have decades of experience working with all sorts of businesses and understand the value of up-to-date equipment.
Renewable and Green Finance
Make your business more sustainable with green energy finance agreements for solar panels, wind turbines and more from Anglo Scottish.
Construction and Engineering Finance
At Anglo Scottish, we have decades of experience working closely with businesses in the construction and engineering sector and understand their complex needs.
Agricultural and Farming Finance
At Anglo Scottish, we have decades of experience working closely with rural business to understand their needs, and we know just how much productivity, profitability and performance can be improved by finding the right commercial finance, and asset finance solutions.
Healthcare and Medical Finance
We have decades of experience dealing with businesses in the healthcare and medical equipment sector, and our expert team can help your business identify which finance options will meet your specialist needs.
Leisure and hospitality finance
At Anglo Scottish, we have decades of experience working leisure & hospitality businesses throughout the UK and understand their needs, and specific requirements.
Finding the ideal asset finance company
Due to the range of different forms of asset finance – and the importance of selecting an arrangement which is well-suited to your business – it’s key to choose the right broker to guide you through the process.
The right broker will connect you with a range of funders, and provide guidance for you to make an informed decision on the best option available.
At Anglo Scottish, we have a uniquely varied portfolio of over 70 funders, allowing us to provide a wide range of funding options. And, we adhere to different lending criteria than the traditional big banks, meaning you may be able to access different forms of finance which were previously unavailable.
As well as traditional asset-based lending, we can also offer refinancing or capital release, so you can access equity from your existing assets.
Securing asset-based finance
Once you choose Anglo Scottish, your path to securing asset-based finance is as easy as can be.
Decide on the asset you need to help your business grow
Talk to us, tell us about your business and the asset you wish to acquire.
We will reach out to our panel of lenders on your behalf to gain approval.
Sign your document, once approved we’ll send you your documents to sign. After which we will transfer payment to your asset supplier.
We’ll do a final check to make sure everything is running smoothly, and you can start reaping the benefits of your new asset.
We prioritise open, transparent communication throughout the process, so you’ll get visibility on what we’re doing, and we can support you throughout every stage.
It’s never been easier – contact our team to get a quote and begin the process.
We’re proud to have connected plenty of businesses with the correct asset finance arrangements to meet their business’s growth goals.
Find out more via the links below or head over to our Case Studies section for more information.
£2m in finance helps HLA Services secure a raft of contract winsAnglo Scottish Asset Finance is celebrating ten years as a broker to rapidly expanding heating and ventilation specialist, HLA Services, including securing £2 million in funding, which has seen turnover grow to £12.5m.
Asset Finance and Sole TradersFor many small businesses, accessing traditional funding from banks can be challenging, this is especially true for sole traders, which is why many chose instead to utilise asset finance. We take a look at why asset finance and sole traders work so well together.
How Asset Finance Can Make Your Business More SustainableA recent UN study has shown highlighted the negative effect that humanity is having on our planet
Frequently asked questions
What are the advantages of asset finance?
Asset finance is hugely helpful for businesses with limited working capital to invest in machinery or equipment they need to grow. By spreading the cost of the purchase, rather than buying outright, the company’s cash flow is less significantly affected.
What is asset finance guaranteed against?
With an asset finance agreement, any guarantees are made against the asset itself.
What is hire purchase often used for?
Hire purchase is commonly used for financing new or used vehicles, though it can be used to finance a wide range of assets. It is typically used for assets with a substantial upfront cost.
Is asset finance the same as a lease?
A lease is a form of asset finance, though it is just one of the many forms of asset-based lending we provide at Anglo Scottish. Contact us for more information if you’re unsure whether a lease is right for you.
Is asset finance regulated?
Refutable asset finance companies and brokers are regulated. You should always opt for a company that is regulated by the FCA (Financial Conduct Authority). We are a licensed credit broker authorised and regulated by the Financial Conduct Authority FRN 629574.
What is the difference between on-balance and off-balance sheet financing?
Simply, an on-balance sheet item is recorded on the company’s balance sheet. This means they are considered to either an asset or a liability of the company, and can affect your business’s financial outlook.
If you want to own the asset at the end of the given payment period, it will be considered an on-balance sheet asset. Otherwise, if you’re just loaning the item for a given period of time before returning it, it will not appear on your company’s balance sheet.
Whether you need an asset finance arrangement to help spread the cost of soft assets like office furniture or hard assets like machinery or vehicles, we can help.
Our diverse portfolio of funders means that we can provide a varied range of finance agreements to suit you and your business – and we can help you get access as quickly as possible.
Need help? Call us on 0191 410 4776