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An Asset Loan from HSBC Equipment Finance (UK) Ltd. is a form of medium term finance ideally suited to the acquisition of business assets. An alternative to hire purchase, Asset Loan can be used to finance equipment that has already been paid for in full by your business.

Once you have made the purchase, the loan is advanced and HSBC Equipment Finance take a chattels mortgage over the asset as security. Asset Loan allows you to fund the asset without the long-term outlay, and make repayments over a period that suits your cash flow.

Key features of Asset Loan include:

  • Enjoy the benefits of being a 'cash' buyer - you can select the asset and negotiate with the supplier on your own terms
  • Repayments can be tailored to meet your cash flow requirements
  • Fixed or variable rate interest options are available
  • As we take a chattels mortgage over the asset as security, other security would not normally be required*
  • You can leave other credit lines free for working capital requirements
  • You claim any available capital allowances, and the interest element can be offset against any available taxable profits

* subject to our policy requirements

  
Asset Loan @ a Glance
Key Benefits

Negotiate with your supplier as a 'cash buyer'.

Repayments tailored to meet your cash flow requirements.

You claim any available capital allowances.
Eligibility Any business customer that meets our policy requirements.
Security The loan will be secured using a chattels mortgage. 
Min/Max Amount Annual capital expenditure plans of £100,000 and above.
Min/Max Period Minimum 1 year, maximum 7 years. 
Charges and Fees

An arrangement fee will apply.

This is negotiable but is a minimum of £100, plus £40.

A typical Asset Loan negotiation process would be as follows:

  • You select and negotiate the terms on which you wish to acquire the asset as you would normally
  • The supplier should raise an invoice to be paid by you
  • You then advise us that you have paid for the goods in full and that title to the goods rests with you
  • We will complete the documentation and forward it to you for signature together with a direct debit for the instalments
  • When we receive the documentation back (which will include confirmation that the asset has been delivered and paid for by you) we will reimburse you
  • You pay instalments, which cover the amount borrowed, together with interest charged for the agreed period
  • When all monies due under the contract are fully paid the registered charge taken on the asset will be released

Is it for me?

An Asset Loan is available to any business customer that meets our policy requirements. The initial advance made would normally be in the range of 80% to 90% of the cost of the asset. Assets from all major industry sectors can be financed including printing equipment, yellow plant/cranes, engineering and manufacturing equipment, agricultural equipment and forklift trucks.

How much will it cost?

  • Fixed rate interest is calculated as a percentage over the Cost of the Funds. The rate will be agreed with you at the outset
  • Variable rate interest is calculated at an agreed percentage over HSBC Bank Base Rate. The rate will be agreed with you at the outset
  • Arrangement fees are payable at the start of all transactions. The amount of the fee is negotiable and is dependent on the complexity of the transaction.

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