Asset finance, also referred to as Equipment financing, is a type of financing option that allows businesses to acquire the assets they need to operate and grow, without having to make a large upfront capital investment. This type of finance is particularly useful for businesses that require expensive assets such as machinery, equipment, vehicles, or property.

With asset finance, a lender purchases the asset on behalf of the business and then leases it to the business for a set period of time. The business makes regular payments to the lender over the lease period, and at the end of the lease, the business can choose to either return the asset or purchase it outright at a reduced price.

There are different types of asset finance, including hire purchase, finance lease, and operating lease. Each type has its own advantages and disadvantages, depending on the needs of the business.

Asset finance is attractive to businesses as it allows them to conserve their cash flow and spread the cost of acquiring assets over a longer period of time. Additionally, the asset is used as security for the loan, which means that lenders are often more willing to offer asset finance to businesses with less established credit profiles or who may have difficulty obtaining other types of finance.