The Core Difference
Asset finance structures repayment around the useful life of specific equipment, with the asset often providing part of the security. An unsecured loan doesn’t rely on any particular asset. The right choice depends on what you’re investing in – not on which option has the lower rate headline.
When Asset Finance Works Best
- Equipment with identifiable resale value — CBCT, surgical systems, OCT units.
- Useful life that aligns neatly with a 2–5 year repayment term.
- Capital preservation is a priority, and you’d rather match the cost to the life of the asset.
When Unsecured Finance Works Better
- Refurbishment, building works, fit-out – no identifiable asset with resale value.
- Keeping the balance sheet free of asset-backed security is a priority.
- GGS flexibility is preferred for larger or longer-term projects.
Mixed Projects
Many practice investments are genuinely mixed – adding treatment rooms (refurbishment), fitting them with chairs (equipment), and installing a CBCT (equipment with clear resale value). These are typically funded through a combination of asset finance for identifiable equipment and a practice loan for building and fit-out costs. Both can run concurrently.
