Whether you’re looking to upgrade your equipment, invest in new vehicles, or simply manage your cash flow more effectively, Asset Finance could be the key to unlocking your business’s next phase of growth.
Asset finance enables you to obtain a wide range of equipment necessary to operate efficiently and effectively. It is finance that is taken out by a business and secured against an asset and is provided to all types of businesses including companies, partnerships & sole traders.
Asset finance provides an affordable, secure line of credit – so that companies can invest in tangible assets from office equipment to manufacturing plant, from cars to tractors.
It can be used to preserve working capital, streamline operations, and gain access to the latest technology without large upfront costs. This is particularly useful in fast-moving industries where keeping up with the latest innovations is essential to staying competitive.
Allied Business Finance offer three main types of Asset Finance:
Hire Purchase
A structured repayment plan where you own the asset at the end of the agreement. Ideal for businesses investing in long-term plant, vehicles, or machinery.
Advantages for: Long-term investments in machinery, vehicles, or plant.
Finance Lease
Use the asset for a fixed period while making regular payments, with the option to continue leasing or upgrade at the end of the term.
Advantages for: Businesses that want flexibility and potential tax efficiency.
Personal Contract Purchase (PCP)
A vehicle finance option offering lower monthly payments and the choice to purchase, return, or refinance the asset at the end of the term.
Advantages for: Businesses needing vehicles with lower up-front costs.
We will cover what each of these are, when your business should use them and how they can benefit your business in more detail in subsequent blogs.
Asset Finance remains a popular choice for businesses
Asset Finance is the third most common source of finance for businesses, after bank overdrafts and loans.
In August this year, the Finance & Leasing Association (FLA) showed that FLA members across the asset finance, consumer finance and motor finance markets provided £80.3 billion of new lending in the first half of 2025, 4% higher than in the same period 2024. Of this total £20.2 billion was provided to businesses for investment in machinery, equipment, and vehicles, including £12.0 billion to SMEs.
New figures released earlier this month by the FLA, show that total asset finance new business in July 2025 grew by 3% compared with the same month in the previous year. In the seven months to July 2025, new business was 1% higher than in the same period in 2024.
And this trend is likely to continue. Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, explained, “In the run-up to the Autumn Budget we are expecting the Chancellor to announce a range of measures to boost productivity growth through raising business investment levels. The asset finance industry funds almost a third of UK investment in equipment, machinery and vehicles.”
The Benefits of Asset Finance
Asset finance is flexible. It can be used to fund almost any asset and payment terms can be tailored to meet cash flow. It also allows for equipment upgrades and can be adapted to a business’s financial circumstances, for example in the tourism sector, where work is very seasonal, payment patterns can be set up to reflect this.
Asset finance makes budgeting and forecasting easy with fixed payments. This means that payments are not subject to fluctuations in interest rates and the real cost of acquisition reduces as inflation rises. Fixed payments allow improved cash flow management, which is never more important than in today’s uncertain economic climate.
Certain forms of asset finance (Leasing) may be tax deductible (please consult your accountant around tax issues), reducing the net cost of obtaining the equipment and enabling you to get what your business wants, when your business wants it, spreading the cost to make your budget work harder.
Asset finance also improves financial agility. Businesses can respond to changing market conditions without being locked into outdated assets, and because funding is spread over time, it allows for better long-term planning and strategic investment.
Capital is a valuable asset for any business. By using asset finance, you can acquire the assets you need, achieve potential tax incentives and have little impact on your cash flow, whilst accelerating the return on investment quickly. Asset Finance allows you to hold onto your valuable capital and invest it in other areas of your business.
Asset Finance is also convenient. It allows you to easily manage supplier payment terms, and with payments being made via Direct Debit, it removes the need to settle invoices.
Unlike outright purchases, asset finance gives your business greater protection and flexibility.
Why choose Allied Business Finance?
While traditional bank finance has its place, it’s often rigid, slow, or simply unavailable — especially for new businesses or those with limited trading history.
At Allied Business Finance, we’re different:
✅ We support businesses at all stages, from start-ups to scale-ups
✅ We offer access to a wide range of lenders
✅ We focus on the result – we want the right result for your business, first time round.
✅ We aim to match the right lender to your business
Plus, we take the time to understand your business goals, ensuring that the finance solution we offer not only meets your current needs, but also supports your long-term ambitions.
Our expert team handles your application end-to-end, ensuring it’s accurate and complete — reducing delays and improving approval chances.
Let us help you secure the vehicles, equipment, or machinery your business needs — quickly and affordably.
Talk to our team today to explore flexible, fast and affordable asset finance options.
Email us on [email protected] or complete this short form and one of our specialists will be in touch.
Keep an eye out for our next blogs, where we’ll deep dive into the different types of Asset Finance including Hire Purchase, Operating Leases, and PCP — so you can choose the right option with confidence. Follow us on LinkedIn, Facebook and Instagram to keep up to date.
