HP & Leasing


The majority of physical assets can be financed but must meet certain basic industry criteria of being durable, identifiable, moveable and saleable (DIMS for short).


Many asset finance providers will fund second-hand equipment but it can be very expensive unless large values are involved or there is a ready market and easy valuation basis for the asset class


"Hard Assets" describes wheeled vehicles, plant and equipment and similar items.


Soft Assets are assets with little or no second-hand value when they come to the end of their usable life (the end of the leasing period).

Examples of Soft Assets include hardware & software), office furniture and partitioning, air conditioning systems, security systems (including CCTV) and


Electronic point of sale (EPOS) systems

Soft Assets don’t provide much valuable security making lending a much riskier proposition.


To counter this increased risk, lenders take more interest in ability to pay back. They may also require some form of additional security to offset the risk, this may be a director’s guarantee, another asset as collateral or a vendor buyback guarantee.


Deposits and interest rates may also be higher than with Hard Assets but Soft Asset finance is very popular particularly with High Growth businesses.

Asset refinance

Asset Refinance is when a business agrees to sell an asset/s to an asset finance provider, who in turn provides a lump sum to the business to purchase the asset/s.

In turn, the business agrees to lease back the asset they have just sold and provide regular use payments plus interest to the asset finance provider (paying back the initial lump sum paid).


Refinance allows businesses who are asset rich and require capital to quickly raise large sums from their existing assets, without giving up the use of these assets.


It can be particularly useful for businesses who have experienced a downturn and require a large cash injection but cannot afford to relinquish their existing assets.



It can also be a useful form of finance for businesses who have poor credit or financial history and have been turned down for other forms of finance such as commercial loans. This is because the asset finance provider will base the lending on the value of the asset, not any previous financial records.

Get in touch...

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01785 593244

Serving clients across the UK