Advantages and Disadvantages of Asset Finance

Asset Finance explained

Purchasing new machinery or replacing existing equipment? We can help you find the Asset Finance option that is right for you.

Have the facts before you apply

Leasing or renting assets such as machinery or office equipment can save you the initial costs of buying them outright. In addition, asset finance may have other benefits for your business (cash flow, tax, etc.)

Advantages of asset finance

Advantages include:

access to a high standard of equipment that you might not be able to afford otherwise

interest rates on monthly instalments are usually fixed

typically less risky compared to bank loans – if you can’t make payments you’ll lose the asset but not, for example, your home

the leasing company carries the risk if the equipment fails or breaks down

as long as you pay regularly, the agreement can’t be cancelled

it’s widely available

Disadvantages of asset finance

Disadvantages include:

you can’t claim capital allowances on a leased asset if the lease period is less than 5 years (or 7 years in some cases)

it can be more expensive than buying the asset outright

some long-term contracts can be difficult to cancel early

you may have to pay a deposit or make some payments in advance

Borrow

From £1,000 to £7.5 million or more

Terms

From 6 months to 5 years

Featured Funder

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Finpoint is staffed with impartial finance experts that speak your language and are always ready to walk you through the pro's and con's of each option before you proceed. Decide without any pressure, safe in the knowledge you got the best funding solution for your business.

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Finpoint is designed to help your business find the most suitable finance option. The use of our platform is completely free for companies and their advisors.

Our expert support team is ready to help and answer any questions you have while preparing your finance project.

Watch our short video to learn more about Finpoint or feel free to visit our Frequently Asked Questions section.