Asset Finance

Asset Finance vs Asset Refinance

Asset Finance refers to a type of financial service that enables individuals and businesses to acquire assets without the need to purchase them outright with cash. It therefore allows businesses to spread the cost over time through various financing options.

There are many advantages for businesses to take out Asset Finance, as it allows them to acquire essential equipment without the need for a significant upfront investment. This goes on to helping businesses conserve capital for other purposes. It also provides flexibility for businesses to upgrade their assets regularly, which can be crucial in industries where technology and equipment quickly become obsolete.

In general, we have found that lender’s view Asset Finance deals as lower risk to unsecured loans, as the asset acts as collateral, therefore the potential for loss/default is reduced.

Asset Refinance

Asset Refinance enables businesses to release cash against the value of an asset that they already own. The asset is transferred to the lender as collateral in return for a business loan. The lenders will base their offer on the equity owned, so therefore partially owned items are accessible too.

At NapeX Finance,  we can help fund finance for all types of assets, however Asset Refinance is generally restricted to Hard Assets.

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Useful Information

Take a look at our Useful Information section for some extra guidance and insights about what you are requesting.

Different types of Asset Finance options available:

Hire Purchase (HP)

Under a hire purchase agreement, the borrower pays regular instalments to the finance company. Once all payments are made, the ownership of the asset transfers to the borrower.


In leasing, the finance company purchases the asset and leases it to the borrower for an agreed-upon period. The borrower makes regular lease payments and returns the asset at the end of the lease term or may have the option to purchase it at its residual value.

Finance Lease

Similar to leasing, but the borrower takes on more responsibility for the maintenance and insurance of the asset. At the end of the lease, the borrower can usually continue leasing, return the asset, or buy it at its residual value.

Operating Lease

In an operating lease, the lease period is typically shorter, and the rental payments are lower. At the end of the lease term, the borrower returns the asset, and the finance company takes care of the asset’s future disposal.

Assets are Classified as follows:


High value items required to keep a business moving, that retain value well.

For example …

  • Vehicles (cars, trucks, buses, coaches, agricultural vehicles such as tractors)
  • Machinery
  • Plant Equipment
  • Engineering Equipment


These assets are harder to acquire through Asset Finance as they offer less security, due to lower values or quick depreciation.

For example …

  • Telecoms / IT Equipment
  • Audio Visual / Security Equipment
  • Office Furniture / Gym Equipment
  • Catering / Equipment / Scaffolding


Assets that can be easily re-sold, with easily obtained valuations or second-hand use.

For example…

  • Garage / Textile / Waste Equipment
  • Welfare Units / Portacabins / Holiday Pods
  • Pumping / Surveying / Medical Equipment

Next steps …

If you are an individual or business looking to acquire assets, contact us today and we can help start you on that journey.

Our dedicated Business Finance Broker can assist you with understanding and accessing funding that you need for your commercial purpose. Asset Finance is just one part, don’t forget to also check our Business Finance, Loans, Invoice Finance and Merchant Finance services.

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