Asset finance generally relates to sole traders or businesses purchasing new assets for the business. This could include but is not limited to the following.
> New work vehicle
> Property plant and equipment
> Other physical assets
Asset finance can also cover personal asset purchases, like new vehicles etc.
With asset finance, most lenders will offer the ability to borrow up to 100% of the cost of the asset. This will depend on the circumstances of your application and the lenders specific criteria.
Lenders will most likely require some form of security on the loan, especially when lending at 100%. It is common for the security to be the asset that is being purchased. Other older assets can also secure the loan. Personal assets can act as a security but this should be avoided to protect individual liability.
The most common asset finance is used to purchase vehicles. The loan term of a vehicle is generally between 5 to 7 years. However, for larger more expensive assets the loan term can be extended. It is common for many lenders match the term to the life of the asset.