Asset finance optionsWhat is asset finance
What is asset finance?
Asset finance is a type of finance used by businesses like yours to obtain the equipment you need to grow.
It usually involves paying a regular charge for use of the asset over an agreed period of time, so avoiding the full cost of buying outright.
There are various types of asset finance options and we provide all the normal ones. The most common are leasing and hire purchase.
Why use asset finance?
Asset finance options can be used to fund any asset ranging from machinery to transport, or warehouse racking to an office or restaurant fit-out.
It could be the perfect solution for your business. Asset finance is infinitely flexible, enabling you to:
- improve your cash flow efficiency
- exploit growth opportinites
- save cash resources and spread costs
- avoid depreciation.
Asset finance options
Our flexible asset finance
What sets us apart is that we have worked with our bank of funders to find an alternative way to the normal deposit staged payment asset finance solution. We call it the flexible asset finance option.
Put simply, it means that deposits can be funded so it’s actually better than the normal asset finance solutions.
We have developed a comparison finance calculator so you can see for yourself what a difference this type of asset finance could make
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With hire purchase you have the option to buy your asset at the end of the agreement. Alternatively you can return the asset to the supplier. We can tailor the structure of your payments to your business’ need with flexibility on the term and repayment schedule. Our flexible finance option works well with hire purchase.
Finance leasing means that you rent the asset. Normally, we calculate the rentals over an agreed term and at the end of the term the funder will have recovered the cost of purchasing the asset on your behalf. Leasing works well if you only need an asset for part of its working life. Leasing is also ideal for things that require regular updates, like technology assets.
An operating lease is particularly effective for high-value specialised equipment or assets you need to support a specific contract. We base payments on on the value of the asset over the period of time you need it. This means you can link repayments directly to the revenue your asset generates. The value of an operating lease is in never actually owning the equipment, meaning you can simply upgrade to the latest model at the end of the agreement or send it back.
Sale and leaseback
Sale and leaseback means that you sell your existing unencumbered asset and lease it back, so freeing up value within the asset. Using this method means that you avoid using cash reserves, which could fund growth elsewhere. The risk of how much the asset is worth at the end of the contract is transferred to the funder. Sale and leaseback means that you can plan for the future by fixing rental costs and the interest you have to pay for the duration, so eliminating uncertainty and costly surprises.
Invoice finance means the funder agrees to buy your unpaid invoices which allows you to get advances on cash you’re due from customers, rather than waiting for the customers to pay. As you know, waiting for payment can cause real problems and prevent you investing in growth. The various forms of invoice finance we provide allow you to free up capital tied up in invoices with long remittance terms.
Business, or commercial, loans are available through black and white. These tend to be unsecured and allow for full flexibility of funds to be used to run your business. Full terms and conditions apply and are subject to credit decision by the relevant funder.
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We have developed an alternative way to the normal deposit staged payment finance. It’s better than normal asset finance solutions. Put simply it means that deposits can be funded.
We have developed a comparison finance calculator so you can see for yourself what a difference this type of asset finance could make to your cash flow.