What is asset finance?
Assets are usually valuable, physical items that vital to the running of your business, such as vehicles or computer equipment. Asset finance is the way the businesses finance paying for such large value items without exhausting cashflow.
There are two types of assets. Hard assets are usually high value items including premises, plant, equipment and vehicles, hard assets retain a saleable value beyond the term of your finance agreement. Soft assets are expected to have little or no saleable value at the end of the finance term and include items such as IT hardware, software, CCTV and office furniture. Asset finance covers the way that you pay for these physical assets upon purchase, or loans against current assets known as asset refinance. With flexible options due to the security for the lender of having a physical item to lend against asset, finance is accessible too many businesses. We may be able to arrange bespoke payment plans including seasonal payment structures and balloon payments if required.
Types Of Asset Financing Available
For a more in-depth look at the types of asset finance available head over to our blog where will find an array of information and regularly posted articles on the topic.
Benefits of Asset finance
Purchasing high-ticket essentials for your business can be a drain on cashflow; this is where asset financing comes in. With deals available for large and small purchases asset finance can be used to purchase a £1,000 computer or a £10million piece of machinery. There are many benefits of utilising this type of finance as listed below: