Asset Finance
What purchases and investments has your business planned for this year? You might want to consider financing the purchase.
The full cost of the asset your business needs can be spread out a period of up to 5 years with fixed monthly payments. This enables your business to be more agile and manage cashflow more effectively for whatever lies ahead. By using asset finance you can upgrade equipment, preserve credit lines, support future growth and operational efficiency.
"What exactly is asset and equipment finance and how does it work?"
Put simply – it’s an agreement whereby your business can acquire the equipment, machinery and other assets that your business needs with lots of benefits AND without having to pay the full purchase price upfront.
As the lender will be using the asset as collateral to secure funding very often business owners do not have to give personal or director guarantees.
"What exactly is asset and equipment finance and how does it work?"
Put simply – it’s an agreement whereby your business can acquire the equipment, machinery and other assets that your business needs with lots of benefits AND without having to pay the full purchase price upfront.
As the lender will be using the asset as collateral to secure funding very often business owners do not have to give personal or director guarantees.
The main products available to your business are:
Hire Purchase (HP):
Your business pays an initial deposit which is usually the full VAT value, then regular payments are made over a fixed period of time. Once the final payment is made, ownership of the asset is transferred to the business.
Finance Lease:
Lender or leasing company purchases assets and leases to your business for an agreed period.
The business pays lease payments and at the end of the lease term, you can choose to return the asset, renew the lease, or purchase the asset at a pre-agreed price.
"What types of asset finance options are available to my business?"
"What types of asset finance options are available to my business?"
The main products available to your business are:
Hire Purchase (HP):
Your business pays an initial deposit which is usually the full VAT value. and then makes regular payments over a fixed period. Once the final payment is made, ownership of the asset is transferred to the business.
Finance Lease:
Lender or leasing company purchases assets and leases to your business for an agreed period.
The business pays lease payments and at the end of the lease term, you can choose to return the asset, renew the lease, or purchase the asset at a pre-agreed price.
"But what if we’ve already purchased assets from our cash reserves and now we need the money to invest elsewhere?"
No problem at all.
There are re-finance products that we can use that enable you fund viable assets that you have already purchased. All you need to do is prove that you own the equipment by providing sales invoices and proof of purchase. Your business then raises an invoice to the bank and you can refinance them and release the equity back into the business.
Does this sound like something you would be interested in exploring?
“What are the benefits of using Asset Finance as a way to purchase equipment?”
Retain capital in the business and preserve cash for other opportunities.
Flexibility where the business can either return the asset, renew the lease, or even upgrade which allows businesses to adapt to changing technology and market demands.
Lease payments are operating expenses and therefore tax-deductible. Some businesses may be able to claim capital allowances or depreciation on leased assets too which further reduces the business’s tax liabilities.
Keeping assets that are leased off a balance sheet can improve financial performance. As a result, lease options present well to stakeholders whilst also maintain healthy cash reserves.
A business can purchase the most up to date and efficient equipment by spreading the cost of the purchase up to 5 years whilst improving productivity and staying competitive in their industry.
Fixed lease payments allow effective budgeting and cash flow management easier. As a result, businesses can use financial forecasting to reduce the risk of unexpected expenses or cash flow fluctuations.
“What are the benefits of using Asset Finance as a way to purchase equipment?”
Retain capital in the business and preserve cash for other opportunities.
Flexibility where the business can either return the asset, renew the lease, or even upgrade which allows businesses to adapt to changing technology and market demands.
Lease payments are operating expenses and therefore tax-deductible. Some businesses may be able to claim capital allowances or depreciation on leased assets too which further reduces the business’s tax liabilities.
Keeping assets that are leased off a balance sheet can improve financial performance. As a result, lease options present well to stakeholders whilst also maintain healthy cash reserves.
A business can purchase the most up to date and efficient equipment by spreading the cost of the purchase up to 5 years whilst improving productivity and staying competitive in their industry.
Fixed lease payments allow effective budgeting and cash flow management easier. As a result, businesses can use financial forecasting to reduce the risk of unexpected expenses or cash flow fluctuations.