Asset finance enables companies to obtain funding for the purchase of assets needed to run and grow their business successfully. It is also available to individuals e.g company directors for the purchase of personal assets, such as cars. Funding is normally by way of either a hire purchase or a leasing agreement (see section on asset finance products) and you can borrow from as little as £5,000 up to many millions.
The most common kind of asset financing is to extend loans to purchase: -
- Vehicles such as cars, light commercial & heavy goods vehicles including vans, trailers and company cars, as well as coaches and busses.
- Plant & machinery such as yellow plant, print machinery and machine tools.
- Equipment such as manufacturing, engineering, construction and plant hire equipment.
- Office equipment including computer and telephone systems.
Rather than an upfront lump sum payment, which could be a significant drain on your cash flow, you will ease your cash flow through regular payments over the agreed period of time of your asset finance arrangement.
Benefits of asset finance include:
- Asset and capital equipment are financed from revenue as you put them to work.
- Asset finance rates can be competitive as or even better than bank funding rates.
- Asset finance does not tie up working capital or stock funding.
- You benefit from the full use of the asset without having to pay upfront.
- Fixed rates are available – making budgeting easier.
- Depending on the tax situation you may benefit from tax advantages.
- Leasing can involve low initial outlay.
For more information email Paul Sargent or call 020 7467 4000.