Asset Finance

Purchase or refinance assets for your business.
Business Finance Team

What is Asset Finance?

Asset finance involves obtaining funding for the purchase of a specific asset, or sometimes a pool of assets. The cost of the asset is spread over a pre-determined period – typically 3–5 years – but this can be higher or lower depending on the circumstances.

It differs from term lending as the borrower does not own the asset until the end of the term (when all payments have been made). The lender has security of ownership of the specific asset/pool, and the borrower will in most cases fund a deposit to cover some of the risk. The higher the value of the underlying asset, the lower the interest rate for the borrower.

This facility is common with assets such as vehicles and machinery, as they have a higher resale value once the term is completed. Assets can also be refinanced with a facility. You may have plenty of value in your balance sheets, which can be accessed by an asset finance product.

This will give you a large sum of cash which can be paid back over an agreed term. Repayments are a fixed monthly price, and the cost will vary depending on the type of asset, its value and the length of the contract agreement. The interest rate on an asset finance facility can start as low as 2% annually, albeit this will be driven by the type of asset + your business profit.

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Eligibility

Turnover

Unless you are a new start-up company, the minimum turnover most lenders will deal with is £100,000 turnover.

Trading History

Similarlyto Turnover, start-up companies can get funding. Once you have filed accountsfor your first year of trading, we can then approach our panel of lenders toapply for an Asset Finance facility.

UK Registered Businesses

Due to us dealing with UK Based Lenders, we can only find funding solutions for UK Limited Companies.

Asset Refinancing

If your company are the owners of large assets, such as vehicles, plant, or other expensive items involved within your business, you can refinance them to gain working capital. This works similarly to a Secured Business Loan where the value of the asset in question is released, with a charge being placed upon them. This value is assessed, and a sum of money will be agreed to loan. This sum will be subject to interest, and likely also an arrangement fee. This can be discussed with one of our consultants.



Preferable businesses for an Asset Finance product will have a strong business profile.

With characteristics such as:
- Operating at a profit
- Having a strong balance sheet
- No excessive borrowings
- UK homeowner is preferred
- Own one, or multiple high-value assets


FAQs

How much will an Asset Finance facility cost?
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The cost of an asset finance facility will vary dependant on the type of asset, its value and the length of the contract agreement. The typical interest rate on an asset finance facility starts from 2% annually.

Am I eligible for an Asset Finance facility ?
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Eligibility varies largely from lender to lender,with some much more flexible, some much less. The basic criteria for applyingfor an Unsecured Business Loan facility is as follows:
- £100k minimum turnover
- 12+ months trading history
- Details of the asset (make, model, specification, and value)

If you don’t meet this criteria it isn’t the end of the road, other funding options are available, and this can be discussed with one of our consultants.

How long does it take to arrange an Asset Finance facility ?
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Asset Finance facilities can be completed in as short as a few days, although the process can take longer. Our aim is always to make the process as quick, and simple as possible, keeping you updated throughout.

How much money can I get through an Asset Finance facility ?
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Loans can vary hugely in amount. With an Asset Finance Facility, the loan amount will be based around the asset being financed. This can be anything up to £5 million, and sometimes even higher.

Why use Spark Finance?
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We are not your average broker. We strive to find you the perfect funding facility for your business, in the easiest way possible. We designate a member of our team of specialist finance consultants to you, walking you through the entire process until the funds are in your hands.

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Disclaimer: Spark Finance Ltd (Registered office - 18 John Stow House, London, England, EC3A 7JB, Registered Number 10128297) helps UK firms access business finance. Spark is a credit broker, not a lender. Any quotes provided are for information purposes only and subject to status and separate lender terms and conditions. Applicants must be aged 18 and over.  Guarantees and Indemnities may be required.  Spark Finance may receive commission from lenders.  Spark Finance Ltd is authorised and regulated by the Financial Conduct Authority in the UK (FRN 958123).
© Spark Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA) in the UK. Their reference number is 958123, and you can use that to find them on the FCA register.