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The advantages of commercial asset finance

07/08/2020

Having the right assets is one of the most important things that any business has to get right. But with many new assets coming with a hefty price tag, for some businesses it may stretch their cash flow too far or seem out of reach altogether.

Asset finance is a solution that enables businesses to access the assets they need without having to pay for them outright, with fixed monthly payments spreading the cost over a longer period.

If you are considering asset finance, read on for the benefits this type of commercial finance can bring.

Access high spec equipment

By spreading the payment over many months, asset finance allows businesses to purchase equipment that may otherwise be out of their price range, or upgrade equipment sooner than they may have done otherwise.

A higher standard of equipment can often improve efficiency and the quality of work, meaning time savings and even financial benefits in the long term.

It may also be that new technology or equipment has been developed that will transform your industry. In these cases, it’s important to keep up with your competition and invest in new equipment at the right time.

Spread costs and protect cash flow

Asset finance spreads the cost of new assets out over many months. As plant and machinery are often some of the biggest expenses you will face as a business, this makes purchasing new assets affordable.

Even if you did have the capital to pay for assets up front, it could mean a serious knock to your cash flow, leaving you unprotected against unexpected costs or unable to seize new opportunities when they arise in the future.

Fixed interest rates

Asset finance facilities usually feature fixed interest rates, making it easy to plan your finances from day one and giving you peace of mind that you know how much you will pay each month for the entire lease period.

Maintenance can be covered by lender

Depending on the type of asset finance you choose, maintenance of the assets can be covered by the lender, meaning you do not have to worry about any unexpected costs or maintenance issues affecting your ability to continue with work.

While it is important to choose the type of asset finance that works best for you, this can be a good option if you prefer the security of knowing you won’t be hit with an unexpected bill.

Widely available

Another benefit of asset finance is that it is widely available, and newer businesses or those without a perfect credit history can still be considered, as the asset itself will act as collateral for the funding.

This is great for businesses that may have found it harder to secure more traditional forms of funding in the past, such as a business loan or overdraft.

Can be used for a wide range of assets, including second hand

Asset finance can be used on a wide range of assets across different industries, and although it may be better suited to industries that depend on high value equipment, such as construction, it’s always worth exploring to see if it could be a good option for you.

This type of funding can also be used to purchase second-hand assets, bringing the cost down. So, if you know the assets you need can be found in a used condition, asset finance is still a great option.

Limited Liability

As mentioned above, the asset itself is often the collateral against which asset finance is offered, so if you do default on payments, while likely to lose the asset, other personal or commercial assets you own are unlikely to be affected.

Read more about the types of asset finance here, or request a call back from our funding consultants today to find out how it can benefit your business.

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Some of the funders we work with

  • IGF Invoice Finance
  • Creative Capital
  • 4Syte
  • Regency Factors
  • Royal Bank of Scotland
  • iwoca
  • Nucleus Commercial Finance
  • Team Factors
  • Giant
  • Pulse Cashflow Finance
  • Roma Finance
  • ABN AMRO Commercial Finance
  • Davenham Trade Finance
  • Metro Bank SME Finance
  • MarketFinance
  • Lloyds Bank Commercial Finance
  • PNC Business Credit
  • Ultimate Finance Group
  • Shawbrook Business Credit
  • Gener8 Finance
  • Leumi ABL
  • inFund
  • Peak Cashflow
  • Secure Trust Bank
  • Positive Cashflow Finance
  • Skipton Business Finance
  • Berkeley Trade Finance Ltd
  • Calverton Finance
  • Santander Corporate & Commercial
  • Bibby Financial Services
  • Partnership Invoice Finance
  • Sonovate
  • 1pm
  • Investec
  • Boost Capital
  • Trade Finance Partners
  • Woodsford Tradebridge
  • Close Brothers Invoice Finance
  • Asset Advantage
  • InvoCap
  • Aldermore Invoice Finance
  • Catalyst Finance
  • Davenham Asset Finance
  • Haydock Finance Ltd
  • Merchant Money
  • Barclays

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