Asset finance is great for businesses that are looking to make purchases. Not only do you not have to pay a large lump sum up front, but you have the opportunity to spread the cost of the capital over a period of up to 5 years.
At Global Asset Finance Limited we think Asset Finance is great and want to share our reasons why we think businesses looking to make purchases should use it. We’ve put together a list of our favourite Asset Finance facts so that you can see why we love it:
- Did you know that 1 in 3 small businesses that have any external borrowing use Asset Finance? Most people think that asset finance is there for those who can’t afford to pay the full amount up front. However, this is not true. Rather than using the cash in the business, asset finance allows you to spread the cost over 5 years meaning that you can keep on top of your cashflow. If your business has peak sales times, with Asset Finance you can take advantage of seasonal payments. Say you have a busy period in summer but quieter times in winter, you can arrange with the lender to pay back more of your loan in the summer months and make smaller payments in the winter when you’re quiet.
- Asset Finance helps with growth. It allows you to expand and grow your tools, equipment, and fleet. Without these products your business could be stuck in a rut, asset finance gets your business what it needs there and then. There’s no waiting until you have enough cash in the business to buy them, delaying possible new income.
- Global Asset Finance is on the panel for many lenders who have rates as low as a 1.9% flat rate. This is our favourite fact. Asset Finance doesn’t have to be expensive. Speaking to a broker can help find the perfect option for you.
- You own the product at the end of the agreement! With asset finance you can choose to use Hire Purchase which means at the end of the agreement you have full ownership of your asset. And what’s even better, there’s no big hidden end payments.
- Alternatively, you can choose a Lease Agreement or Hire Purchase Agreement . A Lease Agreement gives you full use of the asset but without ownership. This gives you lower initial costs and means you can start earning from the assets immediately.
- It’s Tax advantageous! As VAT is usually reclaimable and repayment interest can be offset against profit.
If you are looking to make a purchase for your business speak to Global Asset Finance about Asset Finance. We will be able to sit down with you and find the best rates. Speak to a human today, call us on 07721 565802 or email email@example.com
Grow your business!