Asset Finance can be used to help businesses from a wide range of different industries, and it’s a flexible and adaptable way for a business to raise the funds it needs.
Its important to know that we use our own network of finance contacts which has been built up over 10 years to offer business with the West Midlands structured funding options from a broad range of asset based finance products. We have funding packages which are build to suit exact business needs, including funding business opportunities such as buying new plant and machinery or generating consistent levels of cash flow.
Although asset finance will help you to manage your cash flow better there are many other benefits of obtaining asset finance which will help you in long term.
What is Asset Finance?
Asset finance involves the purchase of assets such as plant and machinery, vehicles and computer equipment. Often a business will use its own cash in their current account to finance a business asset, only to find out too late that they have left themselves short of working capital.
This type of finance product helps a business by realising that asset finance payments can be spread over an agreed term. Hire purchase (HP) and leasing can provide the answer, allowing you to use the capital asset over an agreed period in exchange for fixed monthly payments.
- Asset finance makes for a better and simplified cash-flow management. Its easier to control your outgoings and to budget effectively, as the repayments are the same each month for a fixed time period.
- Improved financial leverage, as it enables you to save your capital in the business for other expenditure.
- Tax advantages. Operating lease payments are generally tax deductible. Hire Purchase agreements allow the lessee to claim capital allowances.
- We can finance new and second hand equipment.
- We can finance intangible items such as software.
We deal with all the major asset finance companies based in the UK.
Sale and Lease back
This type can also be referred to as purchase leaseback. With this method you sell an asset that you already own to the leasing company in order to free up capital and they will then rent it back to your firm.
Asset Refinancing
This is an under used area of Asset Finance but asset refinance can be a really effective financial method of commercial and office equipment leasing which can raise your cash flow levels.
If you already own valuable assets such as property, technology or machinery you can sell them to a leasing company who will give you the current value of the asset. You can carry on using this asset as before, you just have to send the lessor monthly payments.
Asset refinancing can make a company stronger, no matter to which sector it belongs to, by allowing it to react effectively to changes in market conditions. It can also help to release capital enabling a firm to take advantage of new business opportunities.
