What Is Asset Finance?

Asset Financing uses balance sheet assets to borrow money – the borrower provides a security interest in the assets to the lender.

Perfect for small businesses

As a small to medium sized business (SME) you are probably looking at the price of your new asset and wondering how you are going to afford the one off, large payment required to make your purchase. Asset finance is cost effective and an ideal way to fund these.

Leasing and Hire Purchase

There are two types of asset finance packages, hire purchase and leasing. With these you can plan and pay for the cost of your assets through a standard monthly payment plan over a fixed term. This makes the investment much more affordable and minimises the impact on your cashflow.

How Does Leasing Work?


With leasing, you pay for use of the asset and do not own it at any point.


Deposit (Initial Rental):

You are not usually required to provide a deposit, however you may be asked to pay one or more rentals in advance. You simply pay regular monthly amounts for the use of the asset. You will be tied in from around 2 to 5 years depending how you or your broker have negotiated the deal.

By paying monthly, you are avoiding the one-off cost of having to purchase the asset as a whole, although you will never actually own the asset yourself as you are simply paying to use it.

For more information on leasing, check out our dedicated leasing page

What is Hire Purchase (HP)?


Once the contract is fulfilled, you are the owner of the asset.


You will likely be charged a 10-20% deposit of the asset’s value at the start of the contract. Hire purchase is similar to leasing in the sense that you make regular monthly payments, the major difference with HP is that you own the asset at the end of the contract. This breaks down the cost of your investment so that your cashflow can cope more comfortably by spreading out the cost.

For more information on hire purchase, check out our dedicated hire purchase page

Contact Us

If you would like to speak with us, then you can get in touch via our contact page.

About Us

Our About page contains more information about Praetura Asset Finance and our history.


If you have a specific question, you can see if it’s been answered on our common questions page.