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Business Asset Finance

The intelligent route to acquiring business assets

What is Asset Finance?

Asset finance is a finance solution for businesses who want to purchase, rent or refinance assets such as equipment, machinery, vehicles, software and furnishings.

Assets will come under one of two categories: ‘hard assets’, including plant, agricultural and mechanical equipment, such as vehicles and cranes; and ‘soft assets’, including electronic equipment and other equipment whose value is not easily identifiable, such as computers, CCTV and medical equipment. For the former type of assets, there is a strong lending appetite which means both old and new equipment can be financed, whereas the latter often have limited resale potential.

For small businesses, asset finance can be a great solution to not only protect or increase your working capital, but it lets you do this without using other business assets as security (unlike a bank loan).

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What Sort of Assets Are We Talking About?


Assets often referred to as ‘equipment’, have no fixed definition and can be almost anything these days, from demolition equipment to office furniture. Because of this, our asset finance services for businesses in Manchester, Bolton and surrounding areas is a flexible funding solution and can assist businesses across all industries.


There are two different types of assets: ‘hard assets’, including plant, agricultural and mechanical equipment, such as vehicles and cranes; and ‘soft assets’, including electronic equipment and other equipment whose value is not easily identifiable, such as computers, CCTV and medical equipment. For the former type of assets, both old and new equipment can be financed, whereas the latter often have limited resale potential. Asset financing for soft assets generally requires consideration of additional factors, such as the stability of your business.

The Different Forms of Business Asset Finance

Equipment Hire Purchase

With hire purchasing, your asset finance company purchases the asset then hires out the equipment to you, whilst you pay for it in instalments plus interest. You will eventually own the asset after the last payment is made. You spread the cost of the asset over its useful life and at the end of the repayment period, the equipment is yours (although some finance facilities may charge a small fee); it’s that simple.

The upfront costs of a hire purchase facility are usually greater than those of leasing, due to the requirement to pay VAT and a deposit.

Equipment Leasing

As the name suggests, leasing involves renting the required asset over a period. There are two types of equipment leasing:

Finance Lease

This type of equipment leasing, sometimes referred to as capital leasing, is very similar to hire purchasing. You have full use of the asset and are responsible for maintenance costs, although you do not gain ownership of the asset during the leasing period. This leasing period usually extends across most of the asset’s functional lifespan. Due to this, the leasing periods are longer than those of an operating lease, but the upfront costs are reduced compared to hire purchasing, and VAT is split across your payments. Depending on your asset finance facility, you may be given the option to enter a secondary lease period (usually with a significant reduction in lease costs) with your lender. Alternatively, you can sell the assets to a third part on behalf of your finance facility and retain some of the proceeds (dependant on your lease contract) or return the asset to the lender.

Operating Lease

Ideal for high-cost equipment or for quickly evolving technology, such as computers, an operating lease involves a rental period of the asset, but over a fraction of the asset’s lifespan. You can often upgrade your asset and transfer to a different operating lease at the end of your previous agreement. Most lending facilities include a maintenance service as an added benefit. With an operating lease, your commitment to an asset is less long-term, giving you more flexibility over the equipment type. The costs of a finance lease and operating lease can be offset against tax; many businesses find this beneficial.

Asset Refinance

A business may choose to refinance their assets to release some equity and increase their working capital. In the same way that you might choose to re-mortgage a property, you can refinance an asset in order to pay off any outstanding balances and keep the surplus. The asset’s residual value is the main factor taken into consideration when determining how much you can borrow.

How much does it cost?

The main fees associated with asset finance are the arrangement fee and the interest rate. The arrangement fee is usually a percentage like 5% of the loan amount. One thing to note with asset finance is that interest rates are often presented in two ways: as a flat rate or APR. With a flat rate the interest is charged on the original amount borrowed, no matter what’s been repaid, so throughout the loan you still pay interest on the original amount; whereas APR is paid on the reducing balance. Flat rates are presented as a lower number e.g. 5% flat rate versus 10% APR, however you will end up paying more in interest.

The good thing about asset based lending which includes other solutions like invoice factoring, invoice discounting, property finance, commercial mortgages and asset finance is that it attracts competitive interest rates because the loan is secured against a tangible asset. Rates vary greatly and depend on your circumstances.

Key features

  • Hire purchase, operating leases, finance leases and asset finance solutions
  • Terms up to 7 years
  • Finance available for hard and soft assets
  • Flexible interest options
  • Potential tax benefits
  • Competitive interest rates
Trade Finance

Trade Finance

Funding to pay your suppliers for stock or release cash that’s tied up in stock you already own

Invoice Finance

Invoice Finance

Boost your cash flow by releasing the cash that’s tied up in your outstanding invoices

Business Loans

Business Loans

Loans can be used for a variety of reasons and the funds can be in your bank account in hours

Bridging Finance

Bridging Finance

Fast and flexible property finance that can be arranged in a matter of days

Commercial Mortgages

Commercial Mortgages

From purchasing your trading premises to refinancing your investment portfolio, commercial mortgages are used by SMEs and property investors alike

Development Finance

Development Finance

Designed for experienced developers, this funding provides the backing to purchase land and build new properties


Finding Your Ideal Asset Finance Lender

What are the benefits?
The beauty of choosing asset finance through Ping Finance is that it allows you to spread the cost of using an asset over it’s useful life rather than having to pay for everything upfront which could hurt your cash flow.

Asset finance provides great flexibility for businesses as there are options such as hire purchase, finance leases, operating leases and asset refinance depending upon whether you want to own or rent the asset in question.

With leasing, there are tax benefits as some of the costs and be offset against your tax bill which is a huge bonus for some businesses.

What should I do next?
At Ping Finance, we have a professional team of experts in asset finance. For personal and confidential advice regarding asset finance or to find out how we can help you, please fill out the quick enquiry form by clicking “Let’s Talk” or you can contact us on 0330 058 2330. Our offices are based in Bolton, Greater Manchester.

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Ground Floor,
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Ping Finance is a trading name of Ping Finance Limited which is registered in England and Wales under Company Number is 10973327, whose registered address is Ground Floor, Unit B Lostock Office Park, Lynstock Way, Lostock, Bolton, England, BL6 4SG. Ping Finance Limited is also registered with the Information Commissioner under Registration Number ZA447449.