Asset Finance
Equipment, vehicle and machinery finance for your business without disrupting cash flow. Or unlock funds from assets you already own.
How can asset finance help my business?
Most businesses need assets like equipment, machinery or vehicles to operate. Asset finance is an easy way to fund what you need to keep your business running and help it grow.
Instead of paying the full amount up-front when you buy or replace items, asset finance allows you to spread the cost over time. Monthly payments make it easier to manage the cost of large purchases without tying up your cash. You can even use asset finance to release funds from recent purchases as well as future ones.
Benefits of asset finance?
What do you want to finance?
Cars
Vans
Other vehicles
Equipment
What type of asset finance is right for you?
There are different ways to fund your asset depending on what type of asset it is, whether you’re buying new or used, and if you prefer to hire the asset or want to own it at the end of the agreement.
Business Hire Purchase
Our most popular asset finance option helps you spread the cost of buying assets.
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Option to own at end
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New or used
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Vehicles or equipment
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Fund up to 90% of price
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12 to 60 months
Finance Lease
An affordable way to hire equipment and vehicles without owning them.
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Extend or sell at end
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New or used
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Vehicles or equipment
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Fund up to 100% of price
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12 to 60 months primary lease
Vehicle Contract Hire
A cost-effective way to lease brand new vehicles without owning them.
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Return vehicle at end
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New only
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Vehicles up to 3.5 tonnes
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No deposit
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24 to 60 months
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Let’s talk about Hire Purchase
As you look around your business you will see the things that are essential to its day-to-day success. Depending on what you do this might include machinery, vehicles, or IT equipment.
All these “assets “cost money and don’t last forever, so keeping things up to date and investing in new ones may often be on your mind.
In addition, if you are planning to grow, develop new products or services, or become more efficient and sustainable, this might also mean you need to invest more.
This is where asset finance can come in, a simple way to help you finance the assets you need to help your business thrive.
Asset finance can allow you to borrow the money you need to either buy or lease the assets you want and looks to the value of the asset as the security for the amount you need to borrow.
Hire Purchase, or HP, is one form of asset finance that can help you fund a new asset and ends with you owning it outright.
In simple terms, HP works like this: you identify the asset you want, pay us a 10% deposit, we then buy the asset on your behalf and “hire” it to you over an agreed term, usually between 12 and 60 months. We then charge you monthly “rentals” that cover the remaining cost and the interest on the amount borrowed.
When you have settled the total outstanding, you pay a small “option to purchase” fee and we transfer the asset to your ownership.
So, you Hire it first and Purchase it at the end, hence Hire Purchase. If you don’t want to own the asset at the end of the term, there are other options, including Finance Lease.
Lloyds Bank have been providing asset finance solutions for many years. We have a team of specialists on hand to ensure you get the right support and the help you need to choose the solution that is right for your business.
Other types of asset finance
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Use Sale & Hire Purchase Back to spread the cost of a recent purchase and help cash flow.
If you’ve bought equipment, technology or vehicles using cash or your overdraft in the last 6 months (if you live in England and Wales, or 3 months if you’re in Scotland), Sale & Hire Purchase Back could help you release funds back into your business.
You won’t need to pay a deposit and can choose to make repayments over 12 to 60 months. At the end of your agreed term, you’ll own the asset again.
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Access discounted finance for green purposes with Lloyds Bank’s Clean Growth Financing Initiative (CGFI)
Funding can support small improvements in environmental impact, to large-scale renewable energy infrastructure, and covers vehicles, general building assets, manufacturing, agriculture, construction and industrial equipment.
The discount is available for 5 years on assets valued at over £25,000 and linked to our qualifying green purposes.
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Manage risk and protect cash flow when buying asset from overseas.
Spread the cost of assets over an agreed term when buying assets of £100,000 or more from overseas. The funds are only released when your supplier meets their obligations to help protect your investment.
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A flexible and cash-flow friendly way of financing Professional Indemnity Insurance premiums.
Designed for legal or accountancy practices, this type of asset finance allows you to pay for Professional Indemnity Insurance premium costs over a year, making renewals easier to manage. Funding starts from £25,000 to a maximum of £3 million.
Why choose Lloyds Bank for asset finance?
Frequently asked questions
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An asset can be anything a business needs, from vehicles and equipment to machinery and technology. What you need depends on the type of business you run, but assets usually include everything you don’t sell to customers.
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Our business asset finance solutions can fund a range of assets such as:
- Transportation: HGV, bus and coach, trailers, cars, marine.
- Agriculture: Tractors, combines, biomass, forestry, automation, and livestock trailers.
- Technology: ICT, software, services, telephony, printers, business equipment.
- Manufacturing: Standard plant and machinery, production lines, CNC machines, robotics, automation.
- Construction: Standard construction and plant hire equipment, diggers, bulldozers, demolition drills, cranes.
- Renewables: Small scale renewables, solar panels, air source heating, biomass boilers, Combined Heat & Power (CHP).
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Sale & Hire Purchase (HP) Back allows you to initiate new Hire Purchase agreements against assets you’ve recently purchased and paid for in full.
Providing the equipment was purchased no more than 6 months ago* it can be sold to Lloyds Bank at its full non-depreciated value and hired back to you, releasing cash back into your business with no impact on your day-to-day control of the asset.
*Sale & HP Back can be used to finance goods acquired by you within the previous 6 months in England and Wales, and under Scottish Law within 3 months.
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The easiest way to apply for Hire Purchase is by getting a free quote.
- Tell us how much you want to borrow, and we’ll give you an indicative quote.
- If you’d like to discuss your quote, we’ll ask for some information about you and your business.
- We’ll call you to discuss your quote and your business requirements. We’ll then give you a decision.
- We’ll contact the supplier and arrange the purchase.
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Asset finance solutions are used solely for the purpose of leasing or buying a specific agreed asset. Asset finance looks to the value of the asset as the security for the finance you need to borrow in order to lease or buy it. At the end of your agreement, you will have different options including owning your asset, returning it, selling it or extending your lease.
Expand your business with asset finance
Find out how Teemill are expanding their sustainable textile business through purchasing new equipment and developing their solar farm with our Clean Growth Finance Initiative.
Important Legal Information
Lloyds Bank plc, Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England & Wales no. 2065. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 119278.
Lloyds UDT Leasing Limited, Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England & Wales no. 665240.
Lloyds Bank Asset Finance, part of Lloyds Banking Group, is a member of the Finance & Leasing Association (FLA) and complies with the FLA Business Code of Practice. Lloyds Banking Group is a member of the Lending Standards Board (LSB) and complies with the LSB Standards of Lending Practice for Business Customers (Asset Finance). Further information is available from the FLA at www.fla.org.uk and from the LSB at www.lendingstandardsboard.org.uk.
We are covered by the Financial Ombudsman Service (FOS). Please note that due to FOS eligibility criteria not all business customers will be covered.
The provision of our credit or leasing services by us is subject to you meeting our credit approval. Please ensure that you only apply for credit or leasing services that you can comfortably afford.