Asset & equipment finance
What Is Asset Finance? A Practical Guide for UK Companies
Learn how asset finance works for UK companies — hire purchase vs leasing, asset refinance, what can be funded, who it suits and what to check before enquiring.
Asset finance helps a business get the equipment, machinery, vehicles or IT it needs without paying the full cost up front — and can also release cash from assets you already own.
How asset finance works
Instead of buying an asset outright, you spread the cost over an agreed term. The two most common structures are:
- Hire purchase — you pay in instalments and typically own the asset at the end.
- Leasing — you use the asset for an agreed term, then return it or renew; ownership usually stays with the provider.
The right structure depends on whether you want to own the asset and how long you’ll use it.
Asset refinance
If your company already owns valuable equipment or vehicles, asset refinance (sometimes called sale-and-leaseback) can release cash tied up in them while you keep using them. It’s a way to improve working capital without selling kit outright.
What can be funded
Asset finance is commonly used for machinery, plant, commercial vehicles, manufacturing equipment and IT infrastructure. It must be for business use.
Who it suits
Any UK limited company that relies on equipment or vehicles — from trades and manufacturing to logistics and professional services — and wants to protect cash flow rather than pay large sums up front.
What to check before enquiring
- Whether you want to own the asset (hire purchase) or just use it (lease).
- The total cost over the term, not just the monthly figure.
- Whether refinance of existing assets could free up cash you need.
Important information
This guide is for business customers only and is not financial advice. Finance introduced through Muve is available to limited companies, PLCs and LLPs only, for business-use assets, and any facility is subject to status, provider checks, fees and terms.
FAQs
What can I fund with asset finance?
Commonly equipment, machinery, commercial vehicles, plant and IT — for business use. What's acceptable depends on the provider, and any facility is subject to status.
Do I own the asset at the end?
With hire purchase you typically own it once payments finish; with a lease you use it for a term and then return or renew. Which fits depends on how you use the asset.
Can I raise money against assets I already own?
Often, yes — asset refinance can release cash from owned business assets while you keep using them, subject to the asset and provider.