Asset finance enables businesses to acquire essential equipment, machinery, vehicles, or other assets without needing to pay the full purchase price upfront.

Instead, companies can spread the cost over time through various financing methods, preserving working capital and maintaining cash flow.

In an asset finance agreement, a lender provides funds to a business to purchase or lease an asset. The business then makes regular payments to the lender over an agreed-upon period. Depending on the type of agreement, the business may own the asset at the end of the term or have the option to purchase it at a nominal cost.