What is Asset Finance?
Asset finance is a type of financing that allows businesses to acquire assets, such as equipment or vehicles, without having to pay the full purchase price upfront. Instead, the business can spread the cost of the asset over a period of time, typically through monthly payments.
How does Asset Finance work?
Asset finance works by using the asset being purchased as collateral for the loan. The lender will then pay the purchase price to the seller on behalf of the borrower. The borrower will then make monthly payments to the lender, which will include both the principal and interest on the loan.