How Does Asset Finance Work?
Understanding how asset finance works is crucial for making informed decisions about funding your business assets. This guide walks you through the entire process, from application to approval, and explains what to expect at each stage.
The Asset Finance Process: Step by Step
Initial Consultation
Discuss your needs and explore available options
Application Submission
Provide required documentation and complete forms
Credit Assessment
Lender reviews application and business credentials
Approval & Agreement
Review and sign finance agreement
Asset Purchase
Lender pays supplier and asset is delivered
Required Documentation
Business Information
- • Company registration details
- • Bank statements (3-6 months)
- • Financial accounts
- • Business plan (if required)
Asset Details
- • Asset specifications
- • Supplier quotation
- • Usage details
- • Maintenance plans
Typical Timeline
Initial Application
1-2 business days
Credit Assessment
2-5 business days
Agreement & Documentation
1-3 business days
Asset Delivery
Depends on supplier (typically 1-4 weeks)
Key Considerations
Credit History
Before applying, it's beneficial to understand your business credit score and how it might affect your application. Resources like the British Business Bank's guide on business credit scores can provide valuable insights.
Asset Value
The asset's current and future value influences terms
Term Length
Longer terms mean lower payments but higher total cost
Early Repayment
Check if early settlement options are available
After Approval
What Happens Next?
- Set up direct debit for monthly payments
- Arrange asset delivery with supplier
- Schedule installation/training if needed
- Begin using asset while making regular payments
Learn More About Asset Finance
Ready to Start Your Asset Finance Journey?
Our experts will guide you through each step of the process and help you secure the right asset finance solution.