Close Brothers Asset Finance

Flexible finance for the woodworking industry

What is Asset Finance?

Asset Finance is an alternative form of funding used by businesses to obtain the equipment they need to grow.

Common examples of asset finance products are:

  • Hire Purchase (HP) allows the customer to buy the equipment on credit. The finance company purchases the asset on behalf of the customer and owns the asset until the final instalment is paid, at which point the customer is given the option to buy it
  • Refinancing (Capital Release): The finance company purchases the asset and finances it back to you. Repayments are calculated in line with the income stream that will be generated by the asset; at the end of the refinance term, you own the asset
  • Finance Lease: The full value of the equipment is repaid to the finance company, plus interest, over the lease period. At the end of the term, the company can choose to:
    • continue to use the asset by entering a secondary rental period
    • sell the asset and keep a portion of the income from the sale
    • return it
  • Operating Lease: Similar to a Finance Lease, an Operating Lease allows you to rent the asset from us while you need it. The key difference between the two is that an Operating Lease is only for part of the asset’s useful life. This means you pay a reduced rental because the cost is based on the difference between the asset’s original purchase price and its residual value at the end of the agreement.

Types of assets financed

The beauty of asset finance is its flexibility – it can be used to fund any asset, including (but not limited to):

  • CNC routers
  • Edgebanders
  • Milling machines
  • Drill press
  • Planers

We can even help with the refurbishment of assets, for example, where we pay the refit costs by taking security of an asset to aid cashflow, via Sale & HP Back.

It makes the otherwise unaffordable affordable because it gives businesses access to the equipment they need without incurring the cash flow disadvantage of an outright purchase.

As industry experts, we understand how vital it is that you have the right equipment, so whether you are looking to expand your range of equipment or replace it, we can help.


Main ContactIan Homer
Telephone Number07540 919685