Asset Finance

What is Asset Finance?

Asset finance is where you raise money to purchase assets for your firm, such as machinery, vehicles etc, while using those assets you purchased as security for your loan. Also if your company is asset rich and cash poor it’s possible to unlock the capital tied up in your assets by refinancing them and this is possible even if they are already subject to finance.

Some of the assets we have been able to finance are:

• Commercial Vehicles
• Printing Machinery
• Contractor’s Plant
• Coaches and Buses
• Window Machinery
• Textile Machinery
• Cars
• Machine Tools

Benefits of asset finance

One of the main advantages of asset finance is that you can avoid paying cash up front for all the assets vital to the smooth running of your business - things like office equipment, vehicles etc - and you can maintain your working capital for other business uses which could help you company grow. Also you can chose to coincide your monthly asset finance repayments with your business income, making it easier to plan your finances.

Disadvantages of asset finance

The main disadvantage of acquiring the equipment you need through asset finance is that you don’t own the equipment. It is possible that it could be repossessed which might have an adverse effect on the running of your business. Also as you won’t own the equipment you won’t be able to claim your own capital allowances on it.

Summary

Asset finance is where you raise capital using your assets as security for the loan. The main advantage of asset finance is that you don’t need to come up with a cash lump sum to purchase essential equipment up front. The main disadvantage of asset finance is that you don’t own the equipment which might cause problems further down the line.

There are many considerations you must make before you decide that asset finance will benefit your particular circumstances. Fill out the online form and one of our expert financial advisers will contact you to discuss your financial needs.

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