Asset Finance

Get your business what it needs using Asset Finance

Looking to finance an expansion project or give your business a cash flow injection? Secure funding using Asset Financing.

Choose from over 120 lenders

Borrow from as little as £1,000

Keep your credit score intact

Apply now

Tide has joined forces with Funding Options, becoming the largest credit marketplace in the UK.

Providing over £750 million in funding to more than 16,000 businesses, we’re on a mission to help business owners grow with confidence.

What is asset finance?

Asset finance is a type of funding which spreads the cost of an asset into manageable monthly payments.

It allows businesses to lease equipment or tools for an agreed time or spread the cost of buying it over a set period.

For example, a business might need a specific piece of machinery, but not have enough cash to pay for it upfront or only need it for a short time. This could be any type of asset including machinery, kitchen equipment, computers, vehicles or tools.

Instead of paying for any of these things upfront, asset finance allows you to pay in monthly instalments so that you can maintain a steady cash flow.

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Types of asset finance

There are many types of asset finance available, each one designed for different types of business.

Hire purchase

A hire purchase means that you are hiring an asset with a view to owning it once you have paid off your loan.

You will be responsible for the maintenance of the asset during the lease term, but the finance provider retains ownership of the asset until all repayments have been completed.

Once fully paid off, the asset is yours to keep or sell.

Business contract purchase

A business contract purchase is similar to a hire purchase, but you will pay smaller monthly payments to cover the interest of the loan, before paying off a larger lump sum at the end of the agreed period.

This final payment is referred to as the ‘balloon payment’.

Contract hire

Contract hire allows you to lease vehicles or fleets, with the provider managing maintenance. This simplifies fleet management and makes budgeting easier through predictable monthly payments.

Finance lease

A finance lease involves renting the asset from a finance provider who has purchased the asset, and then paying in monthly instalments. You are responsible for the insurance and maintenance of the asset.

Once you have paid the loan, you can either:

Continue renting the asset

Return the asset to the finance provider

Sell the asset to another business on behalf of the finance provider

A finance lease gives you the flexibility to decide at a later date whether the asset is essential to your business or not.

Operating lease

An operating lease is ideal if you only need equipment or vehicles for a set duration.

The benefit of an operating lease is that the finance provider is responsible for the asset’s maintenance, not you.

You may also have the flexibility to upgrade the asset to a better model during the rental period.

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Am I eligible for asset finance?

Being eligible for asset finance depends on the type of asset finance you’re looking for, the amount in question, and the stability and turnover of your business.

To be eligible for asset finance from Tide, you must:

Be over 18

Be a UK resident

Have a UK-based business

Have a UK bank account

When applying for asset finance, you will need:

Basic information about your business, such as how old it is, and your annual revenue

Information on directors and shareholders

Bank statements covering the past year

Depending on your business and the asset finance you need, the criteria may differ.

Apply for asset finance in 4 easy steps

Applying for asset finance is simple. With access to over 120 lenders, Tide will find a lender tailored to your business.

Tell us how much you need to borrow We’ll ask you how much you need, what it’s for, and for some basic information about your business. If you already bank with Tide, you can apply for asset finance straight from the app.

Compare loans without impacting your credit score View affordable credit options that suit the unique needs of your business.

Apply in minutes Once approved, you’ll receive a quote from a lender you matched with.

Get a decision and receive your funds Depending on the loan, funds could be available in around 24 hours.

Apply now

Asset finance pros & cons

Obtaining asset finance for your business has a number of pros and cons that you should be aware of:

Pros

Low upfront fees

Quick access to business assets

Free up capital for your business

Fixed interest rates and repayments can help you manage your cash flow

Gain a competitive edge with access to new business assets

With some asset finance types, you can save on maintenance costs

Cons

Failure to repay will lose you the asset

The minimum term is often one year

With some asset finance, you are liable for damage

For some assets, such as vehicles, there is a limit on the usage

You may never own the asset

We will help you pick the asset finance that is right for you, and alert you to any risks.

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Aaron MoOng Ong Buns

With the help of Tide and their team of financial advisors, I was able to navigate the complexities of business finance, and secure the necessary funds to grow my business.

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Use Credit Score Insights to understand your business credit score

Use our Credit Score Insights tool to understand the factors affecting your business credit score. It's simple and affordable to use, and can be accessed directly in the Tide app. Get insights into your business credit profile and improve your chances of securing funding from lenders.

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Business Finance FAQs

What do I need in order to apply for a business loan?

There are a number of eligibility checks your business will need to meet in order to secure a business loan. Typically, these are:

Your credit score in order to check your credit worthiness

The age of your business

Annual revenue, including net operating income

Potential collateral - eg do you have any assets (inventory, property, equipment, etc) to back the loan in case of default.

Personal debt-to-credit-ratio - some lenders perceive being in receipt of a large amount of credit at the time of applying for a business loan to be a risk

Can business loans affect my business credit score?

Yes, when you apply for a business loan, a credit check will usually be run with Credit Reference agencies. If you submit multiple business loan applications, then this can send negative signals that your business may be in trouble and this can in turn have a negative impact on your credit score. With Tide Business Loans, pre-eligibility checks are carried out before you apply. This can reduce the likelihood of your application being rejected and adversely affecting your credit score.

Other ways in which a business loan can influence your credit score include if you default or fail to make repayments on time. However, using credit wisely and ensuring you always pay on time will help to grow your business credit score.

How long does it take to approve a business loan?

The length of time it takes to approve a business loan depends on the type of funding you have applied for. Some products, such as Merchant Cash AdvanceFlexible Loans or revolving credit have a very short turnaround and the approval process can take as little as 2 business days. Other types of funding, such as Start-Up Loans or Equity and Grant finance have a much longer approval process which can take several months.

Will my business loan application involve a credit check?

Yes, when you apply for a business loan, lenders will run credit checks with the main credit agencies to verify that you can afford to repay your loan. There is a risk that making too many failed business loan applications could negatively impact your credit score. With Tide Business Loans, pre-eligibility checks are carried out before you apply to reduce the risk of your application being unsuccessful. This also means that all the available options displayed will be tailored to your business needs.

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