Asset Financing is a short-term funding solution that enables companies to pay suppliers, employees or to finance growth. You can finance any purchase of a new asset, or you can secure a loan against any existing resources of your business and release equity from them. With cash flow being the most vital aspect of all businesses, this type of funding is an ideal option available for investing in new equipment or for spreading the cost of a new possession over time. It can also be beneficial for companies who need to access money quickly.
An asset can vary from stock, machinery, plants, vehicles, IT equipment and even fixtures and fittings. It is effectively anything that is listed on the balance sheet. With the assistance of Elite Business Funding, our expert finance brokers can help you secure a loan to finance any of your purchases. Our aim is to manage your finances, increase the availability of liquidity and ultimately expand your business.
What are the two alternatives for Asset Finance?
When it comes to purchasing new assets, businesses typically have two alternatives; Finance Leasing and Hire Purchase.
Finance leasing allows you to borrow or rent an asset over a defined period of time from a leasing company. Not only does finance leasing provide you access to the tools and equipment that your business requires, but it also eliminates the burden of ownership which can become stressful over a long duration. The full value of the equipment is repaid to the hiring company as well as any interest rate, however at the end of the term you have the choice to return it, sell the resource or continue to lease it by entering a second rental period.
Most people are familiar with Hire Purchase and may have considered or have used it before. Hire Purchasing allows you to own the resource at the end of the agreement, allowing you to spread out the payment and therefore ease the impact of cash flow. The finance company will own the asset until the last instalment is paid; after that it is all yours.
What is asset financing often used for?
From office equipment to plant machinery and vehicles, to inventory and stock to fixtures and fittings; you can finance all existing and newly purchases. With over 150 lenders in this field we guarantee that you’ll be able to find asset finance for almost anything, and with our help we can arrange you a loan, whist dealing with lenders, therefore eliminating all hassle from your behalf.
There are various types of business that utilise asset financing, the most common types include those who are working in the agricultural, construction, engineering, manufacturing and transportation industry. However here at Elite Business Funding we can help secure any loan for any business. If you are interested in, or feel that this type of financing is suitable for your company, contact one of our specialist brokers today and we can see if it is viable or not. If not, we will then assess your circumstances and advise the most appropriate financial option.
Advantages of Asset Finance
Asset finance is beneficial for anyone who is looking for a cost-effective financial solution when it comes to securing a loan against any property within your company. With this type of funding you can spread out the payments for up to 6 years and unlike bank overdrafts interest rates are fixed and repayable on demand. In addition, it is an ideal option for anyone hoping to release equity for their existing products and therefore get a quick turnaround for their business. And with this in mind, many asset financing companies can unlock funding against the value of existing equipment to provide cash flow to your business.
Many specialists’ lenders in the market will also provide expert advice on where to make any purchases as part of their services and will work closely with our team at Elite Business Funding to guarantee that it will not affect any of your existing financial agreements. As well as this, it is also easier to obtain a bank loan with asset finance and unlike other funding options, you can offset your reduced corporation tax against your profits. Another benefit is that it is a great way to fund the purchase of machinery and equipment with reduced risk and limited security required.
Are you eligible for Asset Finance?
If your company is UK based, and is looking to purchase a new or finance any existing purchases, then asset finance may be a possibility for you. Typically, your business must be profitable, liquid and solvent in order to be eligible for this type of funding and your new or existing possessions must be identifiable, durable and moveable. You also need minimum information and documents in order for approval, however they are generally one of the easiest loans to qualify for due to its low risk.
If you feel that an Asset Finance could be suitable for your business then contact us today and we’ll evaluate your circumstances to see if it is feasible and practical for your business. Here at Elite Business Funding our main aim is to reduce stress and pressure from your behalf by securing you a profitable business loan.