9 Industries Where You Can Use Asset Finance in the UK
When you’re trying to get funding for your next business venture, it can be tough to know where to turn and how to acquire the money you need to grow. Luckily, Asset Finance in the UK can provide you with everything from equipment leasing and hire purchase financing to help you get the perfect vehicle or asset.
Asset Finance in the UK can help you find the perfect product or service that meets your needs and exceeds your expectations, so you can start making money sooner than later. Here's the list of 9 industries where you can use Asset finance in the UK.
1) Retail Industry
Property, motor vehicles and furniture are all expensive purchases, so it’s natural to want to spread out payments over some time. This is where asset finance comes into play. It’s a simple idea—you purchase an item you can afford upfront, but that you know won’t cover your monthly payments at full price.
Then, you agree with an asset finance lender who takes ownership of that item and offers you fixed monthly instalments. When you pay off the loan, they return your property. And if you fail to make those payments? They keep your property as collateral for their investment.
2) Transport & logistics
The shipping and transport industry is one of the oldest, most important industries on earth. Transport & logistics businesses are some of our favourite asset finance clients because they help keep people and products moving around—you need to get your products delivered to your customers, right?
If you want to expand your business with a piece of industrial equipment that can lift or move heavy objects (e.g., cargo, packages, parts), then you might be a good candidate for UK asset finance. There’s no reason to invest tens of thousands of pounds into something if you don’t have to!
One of UK asset finance’s primary purposes is to provide funding for large projects and, with construction being one of Britain’s biggest industries, it’s no surprise that there is a lot of asset finance available.
From equipping new buildings with furniture and fixtures to retrofitting them to make them greener, more efficient and more secure, there are plenty of construction projects which will require some form of asset finance.
However, there are also many ways in which companies can use asset finance UK for other kinds of assets, such as vehicles or equipment.
Asset finance can be used to finance various pieces of agricultural equipment such as tractors and other farming machinery. With asset finance, owners can pay only for what they use, allowing them to retain full ownership of their property or business. This is a good option for those who need more than one piece of equipment, but don’t want to buy each piece individually.
It also allows farmers and ranchers to upgrade their equipment without having to take out a loan on everything at once. For example, you could purchase a tractor with a UK asset finance plan that allows you to lease it over time while keeping your farm intact and your credit line open.
The healthcare industry makes heavy use of asset finance as it allows hospitals and clinics to borrow money to purchase equipment, supplies, and vehicles.
Equipment leases are common here since leasing allows institutions to pay for pricey medical equipment over time rather than all at once, helping them to maximize cash flow.
With so many different moving parts and high costs associated with running a hospital or clinic, it’s easy to see why asset finance UK is so widely used in these fields.
A big reason for asset finance gaining popularity is due to its ability to aid educational establishments. More and more schools are opting for asset finance to bring about new equipment for their students, such as laptops and iPads.
This is because UK asset finance allows companies or individuals to pay back what they have borrowed over some time, whereas with cash purchase, you would usually have to pay upfront. This leads to less pressure on school budgets, meaning you can get your desired equipment much quicker!
7) Charity & social enterprises
Nonprofit organizations will often use asset finance to acquire equipment and other assets they need. This category of business is known for its low-profit margins, which means it’s often difficult to cover financing costs with a thin income stream.
One solution is asset finance UK, which allows you to purchase assets over time with small payments (often monthly). The balance remains as long as you use those items—and if you stop using them, you still have to pay off what’s left on your contract.
8) Leisure & entertainment
The concept of leasing can come in handy for business owners and operators who have purchased large assets that cost more than they can pay outright. When you lease or rent assets, you only pay for a portion of their value.
In essence, asset finance is a rent-to-own arrangement between you and a third party financing agency. With asset finance UK, it’s very important to understand what your total costs will be before agreeing with any financial institution. This is especially true if you don’t plan on paying off your debt within a short period.
9) Specialist industries
Logistics, manufacturing, healthcare, retail and others. If you run an asset-heavy business (your product or service depends on heavy machinery), you’ll need to finance your assets through traditional lending methods.
But if your business is asset-light (your product or service doesn’t require any specific assets), and cash flow positive, then using asset finance could be a good option for funding growth.
For example, if you have a fleet of delivery vehicles that cost £50k each, but generate enough revenue to cover their costs and more every month; UK asset finance could help you buy more vehicles with no upfront costs.
Of course, any business can benefit from asset finance – it’s a powerful way to expand your business. But certain industries are more adept at asset finance than others. They include manufacturing companies, construction companies, car dealerships and distributorships.
Whichever industry you work in – your small business will appreciate asset finance. Consider asset finance UK from a reputable lender like Finance Hub when you need extra equipment or infrastructure to run your company. They have low-interest rates and no application fees.