Asset Finance

Investment in operational assets can be one of the most difficult costs for a business to manage – assets are often vital to the continued growth and competitiveness of a business, and usually require a large and immediate capitol outlay. Most businesses do not have cash reserves large enough to cover this expense, and that’s where asset finance comes in – a secure and affordable source of funds that enables a business to invest in assets without tearing a hole in the balance sheet.

Asset finance currently funds approximately 25% of all fixed capital investment outside of property and own-account software, and is extremely important to the transportation, agriculture and manufacturing sectors. There are two main types of asset finance, both of which are tailored by the lender to the individual requirements of each client. The first is Equipment Leasing, which is a good option if your business doesn’t need to physically own its assets, but needs to be able to upgrade them frequently. If you invest in an asset using a Leasing arrangement, the lender purchases the asset and leases it back to you. This gives you immediate use of the asset in the operation of the business, but you don’t ever own it outright. Additionally, if you need to replace the asset with a newer model in order to remain profitable and competitive, most Leasing contracts allow you to upgrade at a minimal cost. At the end of a Leasing agreement, you have the option of renewing the lease, purchasing the asset for a reduced fee, or simply returning it to the lender.

The other type of asset finance is a Hire Purchase agreement, which allows a business to gain immediate use of an asset, while spreading the purchase cost over a long period of time. Hire Purchase agreements usually require an initial deposit, and charge a higher monthly premium than a Leasing agreement. However, at the end of a Hire Purchase agreement, the ownership of the asset transfers to you at no additional cost.

Whatever type of asset finance agreement you need to secure for your business, our team of experts will be able to put together a proposal that is both competitive and affordable. We have developed close relationships with a number of lenders, which enables us to scour the market for a deal that is just right for your needs. Contact us today for further information and a free quotation.