Asset Finance is a type of lending that allows individuals or businesses to purchase an asset such as vehicles or equipment by spreading the cost over a fixed term through regular repayments.
Rather than paying the full amount upfront, Asset Finance gives you access to the asset while you repay the cost over time. The asset itself typically acts as security for the loan, which means the finance is secured against it until the final payment is made.
If you’re looking to finance assets for your business, Asset Finance can help you to buy or lease the equipment, vehicles or other assets you need to run and grow your business without paying the full cost upfront. Instead, you can spread the cost over time through regular or flexible payments tailored to meet your specific requirements. Types of Asset Finance for Business customers:
Business Hire Purchase helps you to purchase an asset through regular fixed instalments , allowing you to grow your business while alleviating pressure on your cash flow. With Business Hire Purchase, you can spread the cost of purchasing new or updated equipment, technology, and/or vehicles. When all installments are paid, you will automatically own the asset. Learn more about Business Hire Purchase.
Business Finance Leases are a medium-term rental agreement (usually 3-5 years) whereby we buy the assets your business needs and lease them to you over a given period. At the end of the lease period, you can either choose to extend the lease by paying a small annual rental or opt to buy the asset outright in a seamless process, from a Leased Assets Disposal Company (which will have acquired the asset from us). Finance leases are only available to business customers and allows businesses to show the value of the asset on their balance sheet. Learn more about Business Finance Leases.
Contract Hire Agreements, also known as "Operating Leases" are a method of funding the use of an asset over an agreed period. In conjunction with one of our authorised asset suppliers, Contract Hire Agreements offers a complete asset funding solution. As you are renting the asset for a period there are no residual value worries – you simply return the asset at the end of the agreement. With fixed monthly costs, it is easier to budget. Learn more about Contract Hire Agreements.
Contract Hire Agreements also allows for off balance sheet funding. By funding your fleet using contract hire arrangements you can replace vehicles at fixed intervals ensuring you always have the most reliable and cost-effective vehicles available to your business. You will not own the asset at the end of the contract and the asset is required to be returned to the supplier. Learn more about Contract Hire Agreements.
Unit Stocking, also known as "Wholesale Finance", supports motor dealerships and asset suppliers to effectively manage their cash flow position by funding their stock. Unit stocking is a revolving working capital product which enables you as a dealer or supplier, to stock and fund new and used assets on your forecourt and in your business. Learn more about Unit Stocking.
If you are looking for a car for personal use, Consumer Hire Purchase may be an option. Also known as Hire Purchase or Car Finance, it allows you to spread the cost of a car into fixed, monthly repayments over a set term.
Unlike traditional bank loans, Consumer Car Finance is typically arranged at the point of sale through a motor dealership, which acts as a credit intermediary. To apply for Consumer Hire Purchase, you must purchase the vehicle through a participating dealership, rather than from a private seller.
Consumer Hire Purchase is a credit agreement that allows you to purchase your vehicle by paying fixed monthly installments over an agreed term. This can help you manage your household budget.
With Consumer Hire Purchase, the vehicle acts as a security for the finance agreement. This means the finance is secured against the vehicle until the final repayment is made.
It is currently the only type of consumer car finance offered by PTSB Asset Finance.
PTSB onboards motor dealers as authorised Credit Intermediaries. You can check if a particular motor dealer is a PTSB credit intermediary on the CCPC website here: See list of authorised credit intermediaries.
Please note: PTSB Asset Finance will pay commission to Motor Dealers (acting as Credit Intermediaries) for new business finance originated through them.
Commission will be calculated as a percentage of the amount borrowed.
| Type of finance | Deposit required | Balloon payment | Own the asset at the end of term | Flexible payments | Fixed interest rates |
|
Business Hire Purchase2 |
✓ | ✓ | ✓ | ✓ 1 | ✓ |
|
Business Finance Lease2 |
✓ | ✓ |
You will have the option to return or buy the asset at the end of the lease term. |
✓ 1 | ✓ 3 |
|
Consumer Car Finance |
✓ |
|
✓ |
Monthly repayments only. |
✓ 3 |
|
Unit Stocking |
✓ |
|
N/A |
✓ 1 | Variable |
|
Contract Hire |
|
|
|
Monthly repayments only. |
✓ 1 |
1 Flexible repayment options are normally: Monthly, Quarterly, Half Yearly and Yearly but can be structured to meet individual customer needs.
2 The Cost of Credit associated with these products will be higher for longer terms and lower for shorter terms. Alternative terms may be available to you.
3 The interest rate on a consumer hire purchase agreement is based on how long you want to borrow the money over (the ‘term’), how much you want to borrow, and how much of a deposit and/or trade-in you are putting in (‘LTV’).
This page is for general information purposes only and is not intended to be taken as financial advice. For personalised guidance, please speak with a qualified financial advisor or accountant.
All statements concerning taxation are based on best understanding of current legislation. Levels and basis of taxation can change at any time. This information does not constitute legal, tax, financial planning or any other advice.
Warning: If you do not meet the repayments on your hire purchase agreement, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit, a hire purchase agreement, a consumer hire agreement or a BNPL agreement in the future.
Warning: You may have to pay charges if you repay early, in full or in part, a fixed-rate credit facility.
Warning: You may have to pay charges if you pay off a hire purchase agreement early.
Warning: The cost of your repayments may increase
Warning: The entire amount that you have borrowed will still be outstanding at the end of the interest-only period.
