Keen to explore the business finance options available to SMEs across the Sheffield City Region? This month J&J Commercial Finance director Jamie Baggaley explains how Asset Finance can help businesses

What is Asset Finance?

In its simplest terms Asset Finance is a type of secured finance where the lender will take a security interest in an asset. It’s changed a lot since the days where it just used to be machinery, cars, yellow goods (JCBs etc) and now covers a broader range of assets.

It generally still covers business critical assets – for example, a fleet of lorries for a logistic company or a coffee machine for a café. This broad range means that Asset Finance is accessible to businesses across different sectors.

The different variations of Asset Finance

There are many different permutations of Asset Finance and structuring a deal can be very bespoke to the individual, business and asset type. In summary:

  • Hire Purchase – This is where you spread the cost of the asset over a period of time. The asset appears on your balance sheet and because you own the asset you are responsible for maintenance and associated costs. At the end of the term you will have full ownership of the asset.
  • Equipment Leasing – This is where the lender owns the asset and rents it back to you. At the end of the lease period you can either continue to lease, upgrade to a new piece of equipment or hand it back.
  • Other forms include – Finance Lease, Operating Lease, Lease Purchase, Contact Hire, Refinance.

Is Asset Finance available to me?

From new start-up business to established businesses, Asset Finance is an option available when purchasing new assets into the business. The types of assets are so varied it could be catering equipment, vehicles, lorries, printers, manufacturing, construction, as well as medical and dental equipment, gym equipment, shop fittings, IT … the list can be endless!

Asset Finance is available to sole traders, limited companies, partnerships, and individuals.

The asset also doesn’t have to be new – it can be second-hand and we can work with you and the supplier to ensure a smooth process. Due diligence will be undertaken to make sure that there is no outstanding finance on the asset before ownership is changed.

How much does Asset Finance cost?

With the various lenders and options available this is a really difficult question to answer and is where J&J Commercial Finance can help. We can guide you through the process from looking at what deposits are available (a number will now do 0% deposit), through to VAT deferment, seasonal payment options, and what you want to do at the end of the term with the asset. We can pull together a no obligation quote and explore the options with you, as well as looking at other finance options giving you peace of mind that you are making the right decisions for your business.

Jamie will be back in June’s edition of unLTD where he’ll be exploring invoice financing in more detail.

To book a no obligation meeting please contact Jamie on 01709 805 624 or e-mail