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Using Asset Finance in your Business

It's win-win, the business gets its funds, the lender gets its security

Assets can be purchased with the cost spread over the life of the asset.

Here are the key points

Asset finance is a generic term used to describe the lending of funds to a business, secured against either a new or existing asset.

It is more commonly used to describe a fast, efficient and flexible method for organisations to acquire assets required to be used in the operation of their business.

The lender finances the purchase and takes security over the asset and the borrower makes monthly payments over an agreed term. Depending on the type of asset finance, the payments can be varied and the asset can either be owned, or not, at the end of the term.

This is a competitive market with a wide range of funders and a multitude of products so it’s important to be clear on your requirements and to know what you are signing up to.

We can take the workload out of the process for you. We deal with all the main lenders which allows us to select the best of all the offers on the market and tailor them to your individual requirements.

We will take the time to explain the different types of products, the lender’s terms and conditions, including the small print, so you always know where you stand and what you’re signing up to.

For more information or advice on any particular requirement you have email us here and we will have one of our specialist advisors call you back immediately.

Asset finance explained

Asset finance is very simply a method of funding the acquisition of assets for your business.

There is a range of standard options available:

Hire purchase or lease purchase
This is the more traditional form of asset finance and generally allows the asset to be used over the period of lease for fixed monthly payments and you then own the asset at the end of the term.

Payments can be structured around deposit levels and ‘balloon’ payments made at the end of the hire purchase or lease purchase agreement.

Contract Hire
This is generally an all inclusive way of funding an asset and usually applies to vehicles. Other costs such as maintenance can be included in the monthly payments and the asset is handed back at the end of the term. With contract hire risks such as depreciation are borne by the lender.

Contract purchase
This is a method of funding assets that gives you the option of owning the asset at the end of the agreement. A guaranteed value for the asset at the end of the agreement means the contract purchase payments are reduced and fixed over the term.

At the end of the term you have the option to make the final ‘balloon’ payment to own the asset, or not and simply hand it back.

Finance lease
This is a method of renting an asset over a period of time which is generally three years or more, where you never own the asset but must maintain and insure it.

A finance lease offers tax benefits to a business and at the end of the term the asset is sold and the proceeds come back to the company that hired the asset.

Operating lease
This is a flexible method of renting assets required for your business that may be needed for short term duration or to support a specific contract.

An operating lease is classed as ‘off balance sheet’ with payments being offset against taxable profits.

Here’s our service

 We will quickly assess your requirements and provide you with the
     best options on the market.
 We are truly independent and not tied or affiliated in any way with
     lenders meaning we will always seek the very best deals for you.
 You’ll deal with an experienced business specialist whom you’ll
     always have direct access to.
 We operate fast track assessments so you know quickly where
     you stand and no ifs, buts or maybes.
 You pay on results. No initial assessment costs, no up-front
     fees, retainers or engagement fees.
 We are highly focussed on successful outcomes for our customers.
 We take you through the whole process from start to finish and
     minimise any input time required from you.
 We’ll take time to explain the lender’s terms and conditions so
     you always know where you stand.
 We’ll satisfy your immediate requirements but will also consider
     and advise on your longer term options.

Here are the advantages of asset finance

Quick and easy to arrange.
Minimises large capital payments and improves cash flow.
 Fixed payments help improve cash flow forecasting and budgeting.
You only pay for the asset over the agreed time you need it.
Less expensive than some other forms of finance such as overdrafts.
Maintenance and service costs of the asset can be included.
Does not affect other lines of credit.
No additional security required.
Tax benefits with particular types of asset purchase.

Wondering what to do next?

Simply make contact here.

To request a call back or if you would like more information or have a specific requirement, email us here and we will channel your enquiry to the most appropriate advisor.

The great thing is there’s absolutely no cost for initial consultations and assessments. We look forward to hearing from you.