Different Types Of Asset Finance

Asset finance is an umbrella term used to describe a number of different types of finance relating to commercial assets.

Complete a contact form or call 0845 4090 376 to find out how our experts can help you to secure the asset finance you need.

Hire Purchase

This is the most typical and readily available credit facility. In basic terms, you source the asset and negotiate the purchase price with the supplier. You pay a deposit to the finance company, typically 10-20%, and the finance company then takes title direct from the supplier.

Even though you are technically not the owner of the asset during the agreement, subject to eligibility you can still claim the writing down allowances as though you had made the purchase outright.
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Finance Lease

With any lease contract the finance company takes full ownership of the asset and rents the goods to you over a predetermined period. The finance company can claim the writing down allowances and convey this benefit to you by reducing the rentals.

It is also worth noting that the purchase price that is being used to calculate the rental is the purchase price net of VAT. Thus, if you are looking to acquire a VAT qualifying car, if leased the rental is calculated on the net price of the car and not the gross price if funded by Hire Purchase.
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Operating Lease

The only difference between an Operating and a Finance Lease is that the primary period rentals do not cover substantially all of the capital cost and hire charges. For example a lease for a printing press costing £400,000 may include a residual value at the end of the primary period of £150,000. The primary rentals are thus based on £250,000 and not the capital cost of £400,000.
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Contract Purchase

This is just a branded variation of the Hire or Lease Purchase facility. The only salient difference is that typically at the end of the agreement there is a balloon or guaranteed future value specified. This final value reduces the amount you have to repay in instalments.
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Capital Raising

If you require financing for an unsuitable asset, or for project work (MBO etc), capital raising by Sale & LeaseBack, Sale & HPBack, or Chattel Mortgage will enable you to put the equity of your existing assets to good use.
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More Specialised Finance

Refinancing

Perhaps you need extra funding to, finance a new purchase of inappropriate assets such as machine tools, finance ongoing research & development, finance a temporary cash shortfall, finance a share repurchase, business acquisition or management buy out/in

Whatever the reason, our extensive knowledge of your business assets and our wide range of products mean we can often provide the necessary funding.
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Vendor Leasing

Keeping control of a sale is vital to any business and having that edge over your rivals can make all the difference in today's competitive marketplace. At Sterling Capital Reserve, we work closely with a number of suppliers across a wide range of asset types including IT, Plant, Machinery and Vehicles. Your customers are provided not only with your equipment, but also the finance with which to buy the equipment.
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High Volume Users

At Sterling, we are independent of any one funder, and are therefore uniquely placed to meet the needs of high users. As an intensive user of asset finance you probably find your ongoing purchases become restricted because... you do not have the time to repeatedly apply for finance or because your current funder is fully committed and will not advance additional finance, we can help you.
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Complex Financing

Many businesses find it difficult to secure the financing they require. Whilst this is often due to an adverse credit history, it is not always the case. We have found that very often, it is not the actual application that is unviable, but it is more about how it has been presented. In today's fast moving finance environment, most funders only have the time to look at certain types of assets, in specified market sectors and for applicants of a particular financial standing.
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