A form of finance that can assist with the purchase of assets is known as asset finance. Similar to a bank loan, this format allows a company to borrow an asset and in return, repays the loan with interest on top however in this instance, the asset tends to be new vehicles or equipment. The lender will remain the owner of the asset until repayment on the loan is complete.

With lease financing, the asset is bought by a financing company who then leases it back to your business in return for monthly repayments and taking responsibility for maintenance such as repairing and insuring the assets for as long as the contract runs. When you finish the length of your contract, you may be given the option to continue to rent or to replace your equipment. The payment will depend on how long of the equipment economic life you are renting for as if it is for its full cycle, you will pay for the entirety of the cost.

An option to rectify non-ownership of the asset is present within the hire purchase area of asset finance. This allows you to purchase an asset from a lender over a defined time frame by granting ownership at the end of a contract. This form usually contains deposits and payments over a defined term.