Finance the Equipment Your Business Needs
Asset Finance for New and Used Business Equipment
Asset finance helps UK businesses purchase vehicles, machinery and essential equipment without paying the full cost at once. Go-Factor helps businesses understand, compare and secure suitable asset finance for new and qualifying second-hand assets.
Selected funders can consider used equipment that is up to seven years old, subject to the type, condition, value and expected working life of the asset. Therefore, replacing a vehicle or buying machinery does not always require a brand-new purchase.
What Does Go-Factor Need to Arrange an Asset Finance Quote?
The initial information is straightforward. To identify appropriate funders and obtain an indicative quote, Go-Factor will normally ask for:
- The asset or equipment being purchased.
- The purchase price and whether that figure includes VAT.
- The deposit available, either as a value or percentage.
- Whether the asset is new or second-hand.
- The age and condition of a used asset.
- Where it is being purchased from.
- The seller’s quotation or invoice.
- The registration plate, VIN or serial number, where applicable.
- The preferred repayment period.
Once these details are available, Go-Factor can approach funders that are suited to the asset and the business.
What Can Be Funded?
Vehicles and Transport
Vans, trucks, trailers, commercial vehicles and other business transport may be considered. For vehicles, the registration plate, mileage, age and supplier details will usually be required.
Machinery and Manufacturing Equipment
Asset finance can support production machinery, engineering equipment, packaging lines and specialist tools needed to increase capacity.
Construction and Agricultural Equipment
Plant, diggers, access equipment, tractors and other working assets may be fundable, depending on their age, condition, value and intended use.
Technology and Business Equipment
Certain IT systems, office equipment, catering equipment and industry-specific assets may also qualify for funding.
New or Second-Hand Equipment
Go-Factor has access to funders that consider both new and used business assets. Some can consider second-hand equipment up to seven years old. However, acceptance depends on the asset type, purchase price, condition and value at the end of the proposed agreement.
The seller also matters. Equipment may be purchased from an established dealer, specialist supplier, auction or another business. Nevertheless, funders apply different rules to private sales and overseas purchases. Go-Factor will therefore confirm the source before approaching a provider.
How Much Deposit Is Needed?
The deposit depends on the asset, business and selected facility. Some applications may require a modest contribution, while specialist, higher-risk or older assets may require more.
Consequently, Go-Factor asks how much deposit is available at the start. We can then compare structures using the correct figure instead of providing a quote that does not match the purchase.
Is VAT Included in Asset Finance?
VAT treatment depends on the finance structure, the asset and the business’s VAT position. For example, the VAT on a hire-purchase purchase may need to be paid at the beginning or incorporated into the proposed transaction where the funder permits it.
Go-Factor will ask whether the quoted price includes VAT and whether the business is VAT registered. However, businesses should confirm the accounting and tax treatment with their accountant before proceeding.
Hire Purchase, Finance Lease or Asset Refinance?
Hire Purchase
Hire purchase allows the business to use the asset while making agreed repayments. Once all required payments are made, the business normally owns the asset or can acquire it under the agreement.
Finance Lease
A finance lease allows the business to use an asset for an agreed period while the finance provider retains ownership. The end-of-term options will depend on the agreement.
Asset Refinance
A business may be able to release working capital from qualifying equipment it already owns. Therefore, asset refinance can be worth considering when cash is tied up in existing machinery or vehicles.
Balloon Payment Structures
Some facilities may use a larger final payment to reduce the regular instalments. However, the business must understand the final liability and total cost before agreeing to this structure.
Can a New-Start Business Obtain Asset Finance?
Yes, some asset-finance providers consider new-start businesses. Nevertheless, they may require a stronger deposit, director experience, personal guarantees or evidence showing how the asset will generate income.
Previous company failures or historic credit problems do not always result in an automatic decline. Instead, Go-Factor will review the background, explain it honestly and identify providers willing to consider the complete circumstances. All applications remain subject to assessment and approval.
Why Arrange Asset Finance Through Go-Factor?
Go-Factor does not rely on one provider or assume that every asset should be funded in the same way. We consider the equipment, supplier, deposit, VAT position, business history and intended use before approaching suitable funders.
As a result, business owners can compare relevant options without spending time making repeated applications. Go-Factor also explains the deposit, repayment period, fees, ownership position and final-payment obligations before a facility is accepted.
Go-Factor is an independent UK commercial finance broker and NACFB member. Our role is to help businesses understand, compare and secure appropriate funding for the equipment they need.
All funding is subject to status, asset suitability, provider criteria and final approval. Asset finance may be secured against the equipment being funded.
Found the Equipment Your Business Needs?
Send Go-Factor the cost, VAT position, available deposit, seller’s details and the asset’s registration or serial number. We will review the purchase and compare suitable asset-finance options.
Request Your Asset Finance Review