New Start
Finance

New Start Asset Finance is a financing solution designed for new or recently established businesses, allowing them to acquire essential equipment or vehicles without paying the full cost upfront.

This option helps startups access necessary assets for their operations, such as vehicles, machinery, or office equipment.

Instead of purchasing the asset outright, the business enters into an agreement to make monthly payments, making it easier to manage cash flow and preserve working capital. At the end of the term, businesses may have the option to own, return, or upgrade the asset.

Startups that have been in operation for less than two years typically qualify for New Start Asset Finance. Lenders will assess the business’s potential for success, often looking at the viability of the business plan and the business owner’s personal guarantees.

While a trading history may be limited, a strong business plan and financial forecast can help increase approval chances. Personal credit history can also play a significant role in the approval process, as lenders want to ensure the business owner or director is financially responsible.

New Start Asset Finance can be used for a wide range of assets that are essential for the operation of a business.

Common examples include vehicles (e.g., cars, vans, trucks), machinery, IT equipment, catering tools, manufacturing gear, and office furniture. Essentially, any equipment that will help the business generate revenue or improve efficiency can be financed.

The business will enter into a finance agreement with the lender to acquire the asset, paying it off over a set period with monthly instalments.

While no or limited trading history is accepted for New Start Asset Finance, lenders typically place more weight on the business owner’s personal credit history and the viability of the business plan.

Startups with less than two years of trading history may find it more difficult to qualify for financing, but a solid business plan and the promise of future success can improve approval chances.

Lenders may also ask for personal guarantees from the business owner or directors to mitigate the risk of lending to a new business.

In New Start Asset Finance, the lender buys the asset on behalf of the business, and the business makes monthly payments over an agreed term.

These payments allow the business to use the asset without paying the full cost upfront. Depending on the agreement, the business may have options to own the asset at the end of the term, return it, or upgrade it to a new model. This flexibility helps businesses preserve cash flow while gaining access to the essential equipment or vehicles they need to operate.

Asset finance for startups provides several advantages, including preserving cash flow by spreading the cost of essential equipment or vehicles over time.

This option helps businesses avoid large upfront costs, making it easier to manage finances and allocate funds to other areas of growth. It also allows startups to keep their assets up to date, with options to upgrade or return the asset at the end of the agreement.

Ultimately, asset finance enables growth without tying up valuable capital, giving businesses the tools they need to succeed.

Yes, most lenders require a personal guarantee from the business owner or directors, especially for new businesses with limited trading history.

A personal guarantee ensures that the lender can recover the outstanding amount if the business fails to repay the loan. While the requirement for a personal guarantee is standard in many cases, it is important for business owners to understand the risks involved.

This guarantee reflects the lender’s confidence in the owner’s personal financial responsibility and helps mitigate the higher risk associated with lending to startups.

It is possible to get asset finance with poor credit, though approval may be more challenging.

Lenders will often require a strong, viable business plan to assess the startup’s potential for success. Additionally, rates may be higher, and businesses may need to offer additional security or a personal guarantee to mitigate the lender’s risk.

While poor credit could lead to less favourable terms, it’s important to demonstrate that the business is a good investment opportunity, and some lenders specialise in providing financing to businesses with lower credit scores.

The main difference between hire purchase and leasing lies in ownership at the end of the term. With hire purchase, the business agrees to make regular payments over a set period, and at the end of the agreement, they own the asset outright.

In contrast, leasing is more like renting the asset for the agreed term. At the end of a lease, businesses may have the option to return, renew, or upgrade the asset, but they do not automatically own it unless a separate purchase option is included.

The approval process for New Start Asset Finance can be completed quickly, often within a few days to a couple of weeks. The exact timeline depends on the type of asset being financed, the lender’s process, and the documentation required.

Once approval is granted, the asset can be delivered promptly, allowing the business to access the equipment or vehicle needed to operate. This quick access is especially beneficial for startups that need to get up and running as soon as possible without waiting for lengthy financing processes.