Quick summary
This guide sets out practical steps to help you identify, compare and qualify for business finance in the UK. It is general information, not financial advice.
1. Hire Purchase vs Leasing
Under hire purchase you pay for the asset in instalments and ownership passes to you at the end, so it is generally treated as yours for tax purposes and capital allowances may be available. Under a finance or operating lease you rent the asset, and the rentals are generally treated as a business expense. VAT is handled differently too. The right answer depends on your business, so check with your accountant first.
2. Match the Term to the Asset
Never fund technology that will be out of date in two years over a five-year term. Match the length of the agreement to the useful life of the machinery or equipment, so it is still productive and earning while you finish paying for it.
3. Protect Your Cash Reserves
Many SMEs use their cash reserves to buy large equipment outright, then find themselves short when a customer pays late. Financing major assets keeps cash free for wages, stock and the opportunities you cannot plan for.
How we work
- No credit check is run to show you indicative options.
- Rates and terms are set by the lender, not by Bizzloans.
- We are a commercial finance broker, not a lender.
- Your information is handled under UK GDPR and the Data Protection Act 2018.
