Asset Finance
Table of Contents
What is Asset finance?
Asset finance helps your business to use or to acquire equipment’s, vehicle, or Machine without owning them outright it will not impacting your business cash flow. You can use needed equipment’s, vehicle, or Machine by just paying nominal monthly repayment. ‘Asset refinancing’ allow you to get funding and use it for your business. If you have wish to buy equipment’s, vehicle, or Machine then ‘Hire purchase’ asset finance will be a suitable option with small amount of monthly repayment on your purchase. You can split the purchases into monthly payments which will not affect the cash flow of the business.
Asset finance offer
Asset Finance help your business to achieve the business demanding needs. Where you can be focused to achieve your goals. There are type of Asset finance available, rather than a business having to purchase an asset outright the lender can also buy the equipment’s, vehicle, or Machine for your business. It’s a fastest way to scale up your business.
Is my business eligible for an Asset finance loan?
- Minimum 6months trading
- UK Businesses
- Sole traders, Limited company or Limited liability partnership (LLP) in the UK.
- Actively Trading
Type of Asset finance
Hire Purchase: You hire the lender’s purchase with monthly repayments that mean lender will purchase the asset. Once you complete the final payment, you will own the asset.
Asset Refinancing: Offers you cash flow for your business on your existing asset. Such as equipment’s, vehicle, Machine or Property Refinancing.
Operating leases: If you don’t have wish to purchase asset and have a plan to use it for the short term not for the entirely of it working life then Operating leases is the best option You will be make a payments monthly over the period with maintenance cost.
Equipment leasing: In this you will be leasing asset with monthly payments over an agreed term at the end of the leasing you may have the option to purchase the asset or to extend.
Finance leasing: In this you will be leasing asset with monthly payments over an agreed term however you can’t purchase the asset at the end of leasing the finance company will be a legal owner for the asset.
What are the advantages or merits and disadvantages or demerits of unsecured business loans?
Advantages or Merits with some facility
Ownership – Ownership on purchase at the end of payments
Purchase What the Business Require – fulfil your business need
Tailored to Your Budget – it does not impact you cash flow
Quick Cash Access – Quick arrangement of facility
Protect Working Capital & Credit Lines – Reserved existing business funds
Minimise Upfront Expenditure – Manage your expenditure in more effectively
Disadvantages or Demerits with some facility
Involvement – Involvement of lender in purchase
Interest – Interest on facilities
Maintenance – Cost of maintenance on purchase
How Asset finance works?
The lender will purchase an asset (equipment’s, vehicle, or Machine ) in behalf of business. Business can make monthly repayments over a period of time for the use of the asset. Once the business complete its final payment ownership of asset change from lender to business. this is the example of hire purchase.
How much funds you can get?
It is always depend on the value of the equipment’s, vehicle, or Machine. the lender will evaluate the asset cost.
What are the minimum documents required for Asset finance?
- Details of Asset
- 6month Business Bank Statements
How much time does it take for Asset finance to be approved?
It takes 4 to 10 days after submitting require documents.