Asset Finance Calculator

What is asset financing?

Asset finance is a type of short-term business loan for purchasing business equipment, machinery, or other assets. Interest rates vary but are typically lower than other forms of business funding, such as a loan.

You can use asset finance to finance or lease fixed assets such as:

• machinery or manufacturing equipment

• agricultural machinery

• cars, vans, or lorries to expand your fleet

These assets are known as tangible assets. You can also obtain finance for intangible assets, such as intellectual property.

How does asset finance work?

Business asset finance allows businesses to acquire expensive equipment without having to pay the full cost upfront. For instance, a manufacturing company needs a new state-of-the-art machine worth £100,000.

Instead of depleting their cash reserves, they opt for asset finance. They approach a financial institution that specialises in this type of financing and negotiate a deal.

The lender will provide a loan for the equipment. The company will repay the money every month for a period of five years. The interest rate is set at 5%.

The company can buy the equipment now and pay for it gradually. This helps them keep their money flowing and invest in other parts of the business.

How much asset finance can I get?

With Approvity, you could secure £1000 - £1 million through asset finance. This allows you to invest in essential assets without depleting working capital or resorting to traditional bank loans.

Benefits of asset finance

• Spread the cost: Asset finance allows you to spread the cost of purchasing equipment over a fixed period of time, which can make it more affordable for your business.

• Preserve cash flow: Asset finance can help you preserve your cash flow by allowing you to purchase assets without having to pay for them upfront.

• Improve your credit rating: Making regular repayments on an asset finance agreement can help to improve your business's credit rating. This can make it easier and cheaper to borrow money in the future.

• Get the latest vehicles or equipment: Asset finance can help you get the latest vehicles or equipment for your business, which can help you improve your efficiency and productivity.

Looking to refinance an asset?

Asset refinance involves obtaining a new loan to replace an existing one, typically with more favourable terms. This process helps businesses improve their cash flow by lowering monthly payments or extending the loan term.

Refinancing can be a strategic move for businesses looking to optimise their financial position. They can take advantage of lower interest rates or improved creditworthiness.

With traditional routes or undertaking your own research, you could potentially find a good deal. However, there are a lot of steps involved:

1. Assessing the current loan

2. Researching alternative lenders

3. Gathering necessary documentation

4. Negotiating new terms

5. Applying for the new loan

Alternatively, you could just take one step: applying with Approvity. Our intelligent software matches you with lenders most likely to approve in seconds.

Not sure which lender is right for you?

Let our intelligent matching software do the hard work for you.

Investigate your options with our smart approval system - we'll only match you with providers most likely to approve your business.

Intelligent finance, unmatched expertise

Instant financial matching tech coupled with financial experts who can guide you every step of the way.

Low risk, high approval rate

We analyse the whole market to bring you matches most likely to approve your application.

Real-time tracking and support

No more chaser emails. You can track your application online in real-time.

Check if you're eligible for asset finance

Eligibility for asset finance typically depends on your business.

Different lenders have different criteria, and it can be difficult to find a good lender.

Thankfully, Approvity allows you to apply in minutes and instantly matches you with a lender likely to approve.

Apply for asset finance

Our intelligent matching service will match you with an invoice financing lender instantly. Plus, our dedicated team are on hand to give unparalleled support and advice throughout the process.