Asset Finance Rise Funding

Asset finance

Asset Finance is often used to spread the cost of buying expensive machinery, equipment or vehicles.

Asset Finance Rise Funding

There are different types of asset finance, but the three most common are:

Hire purchase

This simply means you’re paying for the asset in instalments over a fixed term but will own it outright at the end of the term. You’ll be responsible for the asset during the term and won’t be able to sell it until the term ends.

Equipment Leasing

With equipment leasing you rent the equipment from the seller or leasing company, but have options at the end of the initial term to either:

  • Hand it back
  • Extend the term
  • Exchange the equipment for a newer model
  • Make a final balloon payment to own it outright

In most cases the leasing firm will take care of maintenance of the asset during the loan term.

Contract hire

Contract hire is solely for vehicles only. The provider sources and maintains a fleet of vehicles for you and in return you pay monthly lease instalments over an agreed term. Once this term is finished the provider takes on the responsibility of the vehicles. This is a good option if you have multiple vehicle requirements, and you don’t have the capabilities to source and maintain your own fleet.

Read more on invoice finance

Which is best? Get in touch to discuss which option is best for your business.