Finance CalculatorExplore your finance options
Adjust the sliders to model costs, compare products, and make informed decisions.
What is it?
Need a piece of equipment, machinery, or a vehicle but don't want to tie up cash buying it outright? Asset finance lets you spread the cost over time, using the asset itself as security. You get the kit you need now and pay for it from the revenue it helps you generate.
Key benefits
- Spread the cost of equipment over time without tying up working capital
- The asset itself acts as security, so your other business assets stay unencumbered
- Fixed, regular payments make budgeting and cashflow predictable
Typical market examples — asset finance
Asset finance
5–12% APR
Typical SME range
Hard asset (plant/machinery)
4–9% APR
Strong security, lower rates
Soft asset (tech/fit-out)
8–15% APR
Depreciates faster, higher risk
Start-up / thin credit
12–25% APR
Limited trading history
The full purchase price of the asset, before any deposit is deducted
Upfront amount you pay toward the asset — the rest is the financed principal
Arrangement and documentation fees — typically £150–£500, or 1–3% of the facility on larger deals.
Flat rate charges interest on the full original principal for the whole term. It's roughly double the equivalent APR — the calculator converts it for true cost.
Net incremental profit — revenue the asset generates minus its direct running costs
Your flat rate of 5% converts to an effective 9.7% APR. 9.7% sits in the mid-market range — typical for soft assets or businesses with limited trading history.
Financed principal
£50,000
Equipment cost less deposit
Monthly repayment
£1,607
Based on an effective 9.7% APR · Modelled figure from the converted APR — actual lender repayment schedules may differ slightly
Total interest
£7,853
Total finance cost (interest + fees)
£7,853
The true cost of borrowing — interest plus any fees
Profit vs financing cost
£9.2
How much net profit the asset generates for every £1 of financing cost — reflects the asset's profitability, not whether the rate is competitive.
Total net profit over term
£72,000
Profit the asset generates across the whole term
Profit after financing cost
£64,147
Net profit once the cost of financing (interest + fees) is paid — principal you'd cover with cash anyway
Profit after all repayments
£14,147
Net profit once every instalment, fee and the deposit are paid — the figure that actually clears your account over the term.
Interest payback period
4 months
Months of asset profit to cover the financing cost
Finance cost as % of total profit generated
10.9%
The financing cost of £7,853 is recovered by asset profit in 4 months. Total profit over the term is £9.2 for every £1 spent on financing this asset.
This calculator is for illustrative purposes only. Figures are based on the rate you enter and do not represent a quote or offer. Actual rates and terms will vary depending on your business profile, asset type, trading history, and lender criteria. Offers may differ materially from the indicative ranges shown. Speak to Reciprocal for a personalised illustration.
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