Increasingly we are getting asked about equipment finance, we’ve hooked up with Duncan Payne, a director at Adamantean to help provide some guidance on this topic.
Asset finance spreads the cost of equipment purchases over a number of years, which helps protect cashflow and potentially allows a business to grow at a faster rate. The 2 most common forms of asset finance are Hire Purchase (HP) and finance lease, and there are some important differences to consider ;
The credit and underwriting process is the same for both. You’ll be asked for some financial information about your business and the kit that you want to purchase, and you’ll then discuss the preferred length of the deal. It usually only takes a day or so to assess and hopefully you’ll get an offer that is acceptable quickly.
The differences between HP and lease are quite subtle, but important.