Asset Finance

Asset finance is a type of finance used by businesses to obtain the equipment they need to grow. It usually involves paying a regular charge for use of the asset over an agreed period, thus avoiding the full cost of buying outright. The most common types of asset finance are leasing and hire purchase. Asset finance allows businesses to fund capital equipment outside of normal banking facilities, over a period of 12 months to 7 years. It is useful to help manage cashflow and retain liquidity.

Asset finance includes:

  • Equipment leasing
  • Hire purchase
  • Finance leases
  • Operating leases
  • Asset refinancing
  • Clients wanting to raise funds against machinery or vehicles

Why choose it?

There are three main ways assets can be funded:

  • Hire purchase
  • Finance lease
  • Operating lease

Within each structure we are also able to offer customers low deposit transactions, the opportunity to finance the VAT until it is back in from the VAT Office and also the ability to match payments with cashflow ‘seasonal payments’. Balloon payments are also available to keep payments lower. As with any transaction, all of these benefits are on a deal by deal basis and subject to credit acceptance.

There are many ideas and options available to ensure that the monthly payment fits in well with the needs of a business.

Asset finance is also extremely tax efficient.

Criteria

  • UK based businesses including sole traders, partnerships and limited companies.
  • Our customers will generally be solvent, profitable and liquid but where the headline numbers show a more challenging status, we’re able to assess, analyse and see the underlying position.
  • Funding is available for start-up businesses on a ‘rate for risk’ basis.

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