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Asset finance

What is asset finance?

Asset finance is a simple, cost effective way to fund essential equipment to grow and support your business. It can also include asset refinance, which allows you release cash that’s currently tied up in equipment you’ve already purchased.

Benefits of Asset Finance:

No Large Outlay
The biggest advantage of financing assets is that there is no need for you to pay the entire amount upfront with the majority of the cost being spread over a number of years. This can significantly help to preserve cash flow, which is critical to all businesses.

Cash Flow
As our finance solutions allow costs to be spread over time you can pay for the asset with the income it generates (therefore, paying for itself) whilst minimising the drain on working capital. Poor cash flow is one of the main causes of small business failures, and using effective asset finance effectively can help.

Fixed Cost Funding
With asset finance agreements, payments are typically agreed up front and fixed for the life of the agreement, making cash flow management more predictable.

Preserve Existing Credit Lines
By ensuring a big cash outlay is not required, our finance agreements preserve your other credit lines, (such as bank overdrafts, additional bank loans etc). This allows you to keep other lines of funding open.

Obsolescence
If you anticipate replacing the fixed asset frequently, an asset finance solution can support your ability to your equipment easily, ensuring your business continues to have access to the most up-to-date technology.

 

Asset Re-finance

Asset Refinance is a way of releasing capital from the value of an asset by effectively selling its ownership to raise additional capital whilst still maintaining use of it.

It typically involves refinancing equipment or vehicles which are either owned by a company outright, or subject to an existing finance agreement.

You therefore can sell an asset to a leasing company for its current value and then lease it back over a set amount of time for a regular rental repayment.

You may want to use the extra capital to fund a bigger purchase, or simply to provide a much needed cash flow boost.

Assets can also be refinanced to reduce the monthly repayments on an existing finance arrangement, either by getting a better deal elsewhere or by spreading repayments over a longer term.

Also, due to credit being secured against the asset itself, asset refinance is generally easier to obtain in comparison to other facilities such as traditional bank loans.

In summary, Asset Refinance can:

  • Boost cashflow by providing an injection of capital into the business.
  • Reduce existing monthly repayments.
  • Raise capital for a number of purposes including funding larger projects
  • Give you continued use of the asset.

Contact us today on: 01633 415 222