What is asset finance?

Asset finance solutions overcome the challenges of raising the necessary capital to purchase new assets or refinance existing assets. Whilst many West Midlands based companies combat this through the use of a bank overdraft or a business loan to boost their business’ cash flow, asset finance offers a more direct and specialised funding option to assist with the asset growth of small businesses.

So what exactly is asset finance? Whilst hire purchase, finance leases and operating leases provide a means to purchase new equipment without tying up working capital, asset refinance can release cash against the value of existing business assets.

What are the benefits of asset finance?

  • Asset finance allows businesses to purchase new plant, machinery and equipment whilst protecting their cash flows.
  • Asset refinance releases capital against currently encumbered assets.
  • Equipment can be leased for a short period if only required for a limited time.
  • Finance leases and operating leases avoid the issues relating to asset depreciation.
  • Equipment can be purchased domestically or overseas through asset finance.
  • Asset finance avoids the need to sell at a second-hand price when upgrading the asset.
  • Which asset finance solution is right for my business?
  • There is a range of asset finance options available from a variety of asset finance companies, so it is important to explore the benefits of each one before purchasing new assets:

Hire Purchase

Hire purchase allows your business to hire an asset from a leasing company over a fixed period of time in return for regular payments. The hire purchase company purchases it on your behalf and, once the repayment period of the hire contract is over, your company will have full ownership of the asset…..read more about hire purchase…

Finance Lease and Operating Lease

Both finance leases and operating leases allow businesses to use an asset for a fixed period in return for regular payments. You will not own the asset outright at the end of the repayment period, although an extended lease could be negotiated if needed…..read more about finance leases and operating leases…

Asset Refinance

Asset refinance provides a vital cash injection to help your business overcome any cash flow problems as you sell equipment to an asset finance company, who then leases it back to you in return for regular rental payments…..read more about asset refinance…

Vendor Finance

Vendor finance allows your business to purchase an asset from the seller over a specific period. The vendor forwards a percentage of its value which is paid back in regular instalments…..read more about vendor finance…

Import Leasing

Import leasing offers a means of financing the purchase of any assets from overseas while the asset finance company also specialises in international business management…..read more about import leasing…