Author and review
Written by: Hart Asset Finance
Reviewed by: T & L Leasing Limited trading as Hart Asset Finance
Last reviewed: 2026-07-28
Commercial finance broker guidance covering asset finance, hire purchase, leasing, VAT finance, refinance and SME business funding.
Overview
Asset finance can fund the vehicle, machine or equipment itself. VAT finance can help spread the VAT element or tax liability that might otherwise create a cash-flow pinch around the purchase.
Comparison table
| Purpose | Funds the business asset. | Spreads VAT or tax payments. |
| Timing | Arranged around the asset purchase. | Often arranged around VAT deadlines or large invoices. |
| Cash flow | Avoids a large capital outlay on the asset. | Avoids a large VAT payment landing at once. |
| Together | Can be paired where the asset is VAT-liable. | Can protect working capital after the purchase. |