What is Asset Finance?
Asset Finance is available for people that are self employed to assist them in the running of their business as well as those that want to finance something in their personal name.
The list of assets that we can finance for self employed clients is extensive - passenger cars, commercial vehicles, earth moving equipment and agricultural equipment to name a few.
The list of assets that we can finance if it is going to be in a personal name isn't as extensive - however it does cover the most popular items - passenger cars, motorcycles and scooters, caravans and motor homes.
There are different products that the finance can be taken out under they are as follows:
Personal Facility where the borrower owns the asset from the start of the finance and the loan is secured by the asset.
Commercial Hire Purchase
With this type of finance, a client will hire and use the asset until the last payment. When they make the final installment, title of the asset transfers to the customer.
This is where a customer own the asset from the outset and their loan agreement is secured by the asset.
Here, the financier owns the asset however they bear the risk of disposal of the asset at the end of lease.
This option is for customers who want to include the asset in their salary package. The financier owns the asset, while the customer and their employer sign a novation agreement to share the responsibilities of the loan.
How long is an asset finance term?
Asset Finance facilities are typically between one to seven years, however each lender does have a slightly different policy.