Asset finance – how can it help your business?

December 7, 2018


Over the last few years we’re seeing more New Zealand businesses taking advantage of asset finance plans as a flexible approach to funding their plant and equipment.

With different types of plans available, we’ve created the following guide to simplify asset finance for your business.

What is asset finance?

Asset finance is a collective term for a range of funding options that are used as an alternative to a traditional bank loan.

These funding options include:

Conditional Purchase Agreement (Hire Purchase): A Conditional Purchase Agreement (CPA), commonly known as Hire Purchase, enables you to acquire an asset by paying for it in instalments over an agreed timescale – the term. At the end of the term your business owns the asset. This is a simple type of finance that allows you to budget easily each month with structured repayments.

Finance Lease: A finance lease is a lease agreement against a single asset with a known residual value from the outset. This form of finance lease is GST neutral, allowing you to pay and claim back at a fixed interest rate each month.

Term Loan: A term loan is for a specific monetary amount which is then repaid over an agreed term. Term loans are secured against an existing or new asset and can be used as a separate line of credit alongside your existing bank facility.

Operating Lease: An operating lease allows you to lease an asset (vehicle or equipment) over an agreed term for a fixed monthly fee. Unlike hire purchase, you do not own the asset at the end.

Working Capital: A loan secured over existing equipment / vehicle assets to enable funds that can be used elsewhere in the business.

Benefits of asset finance

New to business or asset finance? Here are some benefits of using an asset finance provider.

New credit line: Asset finance lets you access a new line of credit alongside your existing bank facilities.

Quick access to funding: As a business owner, contractor, dealer or owner operator providing services / completing projects, time and resources may not always be on your side. Access funding as and when you need it through asset finance.

Finance secured against existing assets: In most cases only your existing business assets (equipment / vehicles etc) are secured against your finance plan.

Fixed interest rates: All of our asset finance plans come with fixed interest rates and monthly repayments so you can easily budget business expenses.

Long lease: Our repayment terms are available from 12 – 84 months and agreed to suit your business requirements.

For more information about which asset finance plan is best for you talk to an adviser on 0800 727 101 or email

Our asset finance process

How does the process work? The following diagram explains the 5 stages to asset finance with Partners Finance & Lease.