Asset finance is a smart way for companies to invest in their business. It can significantly protect cashflow, whilst enabling you to invest in, replace, or expand your assets. For the right opportunity, the return on investment can be rapid with your business seeing fast results.
With Asset Finance you have the option to spread your repayments over the ’working life’ of an asset, typically up to 5 years. You can also opt to ‘rent’ or ‘own’ the equipment at the end of an agreed period of time depending on the product chosen. For information on the types of asset finance products available please check out our blog.
Key Benefits of Asset Finance
- Asset financing provides flexible options to purchase equipment or other assets whilst minimising cash outlay.
- You can spread the investment cost over an agreed term. It is possible to structure repayments against the income that your new asset will generate, key assets in your business can quickly become self-funding.
- Asset finance is independent of your bank.
- A high value piece of equipment may generate a significant VAT outlay. With advice from your accountant and dependant on your business cashflow you can spread the VAT cost in your repayments and still have the flexibility of ownership at the end.
- Occasionally an asset purchase can be business critical requiring you to make a purchase outright at short notice. Subject to confirming proof of ownership, the asset can be refinanced at a later date to unlock cash.
- Asset finance can enhance a company’s credit history and rating, making it more attractive to banks, other lenders and also your suppliers (in providing lines of credit and, or, with potentially higher limits).
What Assets Can Be financed?
Plant and Machinery
Replace old machinery or increase productivity and capacity with new equipment to build and expand production lines.
Fund Remote Working Solutions, refresh current IT infrastructure, VOIP telecoms, plus specialist equipment such as medical equipment, robotics and telematics.
Finance for Technology updates, Compliance with industry trading standards, Insurance requirements, Cyber security, automated processes such as accounting or reporting.
Many businesses are upgrading their websites to provide an ecommerce solution for their customers. Building a new ecommerce platform typically involves investment in software and licencing, all of which can be financed.
Refurbishment and fit outs
Refurbish or enhance your environment, whether that’s an office, retail premises or a restaurant, pub or cafe.
Invest in new vehicles to keep your deliveries flowing. Many SMEs are investing in vehicles with a noted rise in the provision of home delivery services
Companies are recognising the need to invest in additional vehicles and drivers, couriers, warehousing, distribution centres and haulage, plus the relevant software and technology needed in order to provide quick, efficient services.
If your business has invested in high value equipment, heavy machinery or vehicles, you can release the market value of the equipment to reinvest the cash back into the business (subject to valuation).