HSBC asset finance: how it works, and how to compare your options

When your business needs an expensive new piece of equipment, there are a number of ways to fund this purchase. HSBC offers its own asset finance, hire purchase, leasing and asset loans, to help you cover the costs of equipment, vehicles and technology.

Asset finance is one of several ways to fund a major purchase, so it’s worth comparing the available routes to funding before committing to a single lender.

What HSBC asset finance covers

We’ll start by outlining how the different types of asset finance work and how they differ from other types of debt finance. 

With asset finance, you borrow capital from the bank to help you access business-critical assets. Unlike a normal business loan, you won’t always end up owning this asset. Under the various kinds of asset finance, you can hire, lease or purchase the asset outright. 

Let’s look at some of the key types of asset finance offered by HSBC:

• Asset finance: This is the main way to fund your capital expenditure on tangible moveable assets. The finance is secured against the asset and the finance terms and product will be structured around the working life of the asset in question.

• Hire purchase: With hire purchase, you can spread the cost of purchasing an expensive asset. The finance allows you to make immediate use of the asset, while repaying the loan through regular repayments. A key benefit is that you own the asset at the end of the agreement, unlike a leasing product.

• Leasing: When you lease an asset, this spreads both the cost of the asset through regular rentals. This helps you ease the cash-flow impact, while making use of the asset in the business. The term of the finance often matches the asset’s useful life. Unlike hire purchase, you do not have legal ownership of the asset at the end of the term. 

• Asset loan: An asset loan is a funding agreement where, as the lender, you might not want to offer security using the asset that’s being funded. Instead, you’ll offer an alternative form of security to support the funding of the loan. This is a good option if the asset itself doesn’t offer any intrinsic security (like IT software, etc.)

HSBC’s asset finance products can be used to access a variety of different assets. 

For example, you could use finance, hiring, leasing or an asset loan to access new commercial vehicles, IT hardware and software, complex asset finance needs or equipment that supports a net zero transition (switching to more sustainable equipment or energy creation, for example).

*Note, please seek professional advice prior to taking out any kind of finance options. This guide is for informational purposes and should not be treated as financial advice.

Comparing a single lender to a multi-lender option

As a business, you know a specific new asset is needed to bring your operational strategy and potential to life. Asset finance is one way to fund this goal, but is going straight to a bank, like HSBC, your only option? And is it the most beneficial way to access this finance?

Asset finance through a single lender

By applying to HSBC, or the other Big Four UK banks, the products, terms, criteria and quotes available to you are limited to those from one finance provider. As a small business with limited trading history, it can sometimes be difficult to meet the bank’s eligibility requirements. You’re also stuck with the interest rates available through the bank.

Asset finance through a multi-lender marketplace

Applying for asset finance through a multi-lender marketplace, like Funding Circle, works differently than using a single lender. Your application for finance gets assessed across a panel of specialist and trusted asset finance lenders, so you’re comparing more than a single offer rather than taking whatever one lender proposes.

Alternatives to HSBC asset finance

If the multi-lender route sounds appealing, there's a good reason for this. When you apply via a multi-lender platform, such as Funding Circle’s Marketplace, you’re putting your application in front of a panel of select lenders. This means you get the best possible deal and terms for your business needs, without being restricted to a solo lender. 

With our Marketplace, you can:

• Borrow up to £5 million in asset finance

• Get terms from 1 to 7 years

• Enjoy competitive rates and flexible deals - Subject to a full credit assessment.

• Access a dedicated UK-based account manager 

• Get your funds quickly to make use of your new asset 

Saving you money to make your capital go further

Having the option to access tax incentives on your capital expenditure makes your money work harder. And with flexible terms and deals through Funding Circle, you know every available penny goes into helping you access the key asset your business needs.

Let’s look at how this works in practice:  

If you buy an asset worth £50,000 through the Funding Circle Marketplace, you

could save up to £11,000 compared to a regular term loan. Note, this is an example and may not represent all cases. Rates and fees are subject to a full credit assessment. 

The example given below is taken from our Asset finance calculator. 

• Asset Finance amount: £50,000

• Term: 60 months

• Administration fee: £295

• Interest: £10,461

• Monthly repayments: £1,013

• Total amount payable: £60,756

Get reviewed for both asset finance and term loans

When you apply via Marketplace, one application can be assessed for both asset finance and a term loan – without you having to make two separate applications for each finance type.

This doesn’t just save you admin time. It also means you’re not limited to one finance product. If asset finance deals are the best fit for your financial circumstances, you’ll find those deals via Marketplace. And if you’re better suited to a term loan, you still have this funding option.

Choosing the finance route that’s best for your business 

Whether you choose hire-purchase finance through a single lender, multiple deals through Marketplace, or an alternative finance option will be up to you. 

There’s no one right answer when it comes to business finance decisions. Do your homework, compare the available options and always get professional advice from your accountant, financial advisers and legal advisers before making any decisions. 

To be eligible to apply for asset finance through Funding Circle, your business needs to:

• Be based in the UK

• Be a limited company or LLP

• Have at least 1 year of trading history

• Have an annual turnover of at least £50,000

If a new capital asset could change the future of your business, now’s the time to apply for asset finance and take the next step in your company’s success story.

Apply for asset finance today

HSBC asset finance FAQs

What is HSBC asset finance?

HSBC asset finance is a way to fund the hire, leasing or purchase of a capital asset in your business. You borrow money from the bank and get immediate access to the asset, while repaying the amount borrowed (with interest) over an agreed payment term. 

What’s the difference between hire purchase and leasing?

With hire purchase, you have use of the asset immediately and legal ownership of the asset once the finance repayments are completed. With leasing, you spread the cost of accessing the asset, but do not own the asset at the end of the term. 

Do I need to bank with HSBC to use their asset finance?

You don’t need to be an HSBC banking customer to use the bank’s asset finance products. But your business must meet the required eligibility tests and will need to nominate an external bank account to make the finance repayments.

Is it better to use one lender or compare multiple options for asset finance?

There’s no single option that’s right for every business. Whether you’ll get a better deal from a single lender or a multi-lender platform depends on the specifics of your business needs, financial health and trading history. Always compare options across the full market. 

How much can I borrow with asset finance?

The amount you can borrow through an asset finance arrangement will vary depending on the provider and the financial position of your business. If you apply via the Funding Circle Marketplace, your upper limit is £5 million. 

Disclaimer

02/10/26 – While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.