Asset finance is a general term that is used in the financial world to encapsulate different types of finance packages. Some finance types include hire purchases, lease purchases, finance leases and operating leases, all of which should be understood on a basic level, especially if you are a business owner needing to buy equipment for your company.

Hire purchases are the most commonly referred to form of asset purchases and allow a business owner to take out a contract, pay a percentage of the deposit and then a monthly “hire fee” to use the item. Once the full purchase price – plus interest – has been fully repaid, the business owner can choose to buy the item at a predetermined fee, or return the item to the lender. Lease purchases are extremely similar to hire purchase, with the difference between these two types of asset finance being you make multiple repayments as a deposit rather than the upfront percentage that you would for a hire purchase. The remaining balance of the asset – plus interest – is then paid in a number of instalments which are defined by the contract.

In a financial lease, the asset is owned by the finance company. The finance company then rents the asset to you for a stated amount of time. At any time, the finance company can write down the allowances and let you use them as well. With a financial lease, you are not able to sell the asset as it does not belong to you. Nonetheless, the finance company can allow you to sell the asset on their behalf in which you will be entitled to a share of the proceeds from the sale of the asset. Your share can be negotiated to as high as 99 per cent of the sale proceeds.

An operating lease is extremely similar to the financial lease so you should compare these two different finance assets to see which one is more desirable for your needs. The difference between these two is that with an operating lease during the primary period, you are not paying for nearly all of the hire charges and capital costs as you would with the finance lease. Operating leases hardly ever have a second rental period. Discuss your asset finance options with your accountant, financial advisor or banking expert. By doing so, you will be able to ask specific questions relating to your circumstances and fully understand how each type of asset finance will impact you and your business.

Car leasing online offers are an attractive alternative to traditional car leasing, offering many financial rewards in addition to the same maintenance benefits.

How many people do you know who have taken out a lease on their latest car rather than the traditional route of purchasing from a dealer or through private sale?

The UK car market has been slower to act but finally it seems that the benefits are getting through and it looks like we are on the brink of an explosion in demand for leased cars. The growth potential is huge – latest estimates reveal that only around one percent of cars are covered by leasing deals in England, Wales, Scotland and Northern Ireland.

As scores of new car leasing/contract hire companies emerge and compete to gain early market share and establish their customer base, the UK public is being presented with an incredible opportunity to drive a great car for a really superb price.

The appeal of car leasing is down largely to the fact that through leasing it is possible to get behind the wheel of your dream car without paying out a fortune.

If you love cars but your aspirations are bigger than your budget, it could make perfect sense to take the less conventional route of leasing. With traditional purchasing, you need a large lump sum and as soon as you buy a new car the dreaded depreciation begins. Within a few years the vehicle’s value has plunged, which can make selling it on a real pain. As a result, drivers often stick with the same car for many years, despite longing for an exciting new drive to rev up their life.

With a leased car, depreciation is the contract hire company’s problem – and you can relax behind the wheel with a stress-free, low maintenance experience. There are many additional benefits to car leasing, which are all contributing to building the early market. Here is a round-up of the key reasons why leasing is often better than buying:

- Drive down the payments: The monthly payments with car leasing are usually much lower than with typical car purchase loans

- Stay in the fast lane: Keep up with the latest trends in car design and manufacture by moving to new models much more often

- Appreciation, not depreciation: Cars can often be leased for less than the cost of the depreciation to a new car, so you can enjoy the fact that you don’t own a declining asset

- Throw away disposal costs: At the end of the lease, you just hand the car back, and don’t have to worry about cost and hassle of selling or scrapping

- Take control of your money: With leased cars, no large lump sum cash payments are required so your money is not tied-up in one purchase

- Be free and easy: There is no need to negotiate with mechanics over repairs, deal with maintenance bills or road tax, as these should be the responsibility of the contract hire company.

The internet is proving the ideal environment for the car leasing market to flourish. Just like any other competitive market, contract hire companies are always coming up with special offers and last minute deals and the best place to find them fast is the Web.