What is Asset Finance?

 

The term "asset finance" can be best explained by clarifying what we mean by asset and what we mean by finance, in this context.

 

An asset must be Durable, Identifiable and Moveable.

 

Durable means that the item should have a working life in excess of any funding term requested.

 

Identifiable means that it should have a serial number or registration number.

 

Moveable means that the item should be able to be moved without damaging or destroying it or any building within which it is located.

 

If any business item does not satisfy ALL 3 of these criteria then it is unlikely that asset finance is the appropriate method of finance.   

 

Typical examples of items that can be acquired via asset finance are:

 

Cars, Vans, HGVs, Bus and Coach, Hearses (any vehicles in fact), Plant & Machinery, IT Hardware, Catering Equipment, Boats, Aircraft.

 

Typical examples of items that would not be suitable for asset finance by virtue of failing one of the conditions above are:

 

Computer Software, Land & Buildings, Consumables, Air-con system fitted into the fabric of a building.