Glossary

Asset finance (defined)

Asset finance funds a specific item — equipment, vehicles, machinery — secured on that item, spread over an agreed term. It spans hire purchase and leasing.

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Definition

Asset finance lets a business acquire or use equipment, vehicles or machinery without paying the full cost up front, spreading it over an agreed term. The funded item itself is the security, which usually keeps rates below unsecured borrowing. Its main forms are hire purchase (you own the asset at the end) and leasing (you use it and typically return it).

Asset finance suits a specific, identifiable asset. Where you want cash to spend more broadly, or the asset is only part of the need, an unsecured loan may fit better — see asset finance vs a loan and the full asset finance guide.