Asset Finance & Leasing can open up a whole world of opportunity to businesses. After all, equipment can be expensive and financially risky to purchase outright. What happens if the purchase blocks up your cash flow, or the needs of your business change further down the line?
Many business owners may feel reluctant to take out a traditional loan. But what if there was a funding solution that could act as an alternative to bank loans? This is where asset financing comes in.
What is Asset Finance & Leasing
Asset finance & leasing gives you access to new equipment or refinance existing assets needed for the everyday running of your business, by providing you with the necessary capital.
Typical Assets Financed:
- HGV Commercial Vehicles
- Company Cars & Vans
- IT and Telecoms Systems
- Construction Machinery & Equipment
- Plant Hire
- Manufacturing Equipment
What Assets is Financed by Global Asset Finance Limited?
Asset financing is flexible, tax efficient, and doesn’t affect cash flow. As terms and payments are agreed at the outset, asset financing is stable and reliable. Even if business is slow, the agreement remains the same.
Hire/Lease Purchase and Leasing are two different approaches to Asset Finance:
Rather than buying assets outright, hire purchase allows you to pay for them over an agreed period in regular instalments. These payments include depreciation of the asset, as well as interest to cover the capital cost. Once the contract is over, you will have full ownership of the asset.
Hire/Lease purchase makes budgeting easier, as you have a clear idea of future expenditure. Repayments can be arranged around your cash flow, and there may also be equipment maintenance included in the agreement.
Leasing means you do not have ownership rights to the asset. However, it provides you with immediate use of the asset and the contract lasts for as long as you require. You only pay VAT on the rental payments, and not the full purchase price. At the end of the term, you have the option to extend the lease, or sell the asset on.
Leasing is a popular, flexible option for businesses. It may be the case that you need to expand your vehicle fleet for a year, but know you won’t be able to afford owning and running them outright. Or you might wish to lease equipment first, build up capital, and then decide to purchase further down the road.
Who is asset finance for?
Any small to medium-sized & corporate business looking to grow their company, but struggling to free up the working capital required, could benefit from asset finance & leasing.
Many business owners see opportunities for growth. Unfortunately, it’s not always easy to find the ready funds to pursue these opportunities. Because of its flexibility and clear, upfront terms, asset finance is a great solution.
More and more companies are turning to asset finance & leasing as the sensible option for investing in their business. In a recent report, Geraldine Kilkelly, Head of Research and Chief Economist at the Finance & Leasing Association (FLA), said: “The asset finance industry has reported solid new business growth so far in 2017.
“Growth in asset finance & leasing provided to manufacturers has been particularly robust, with new business for production and processing plant up by more than 40% in the first eight months of 2017.” (1)
What does this mean? Thousands of UK companies are realising the power of asset finance & leasing when it comes to business growth. If you haven’t already, you may wish to consider joining them.
How can Global Asset Finance Limited help?
Plenty of finance brokers and banks will offer asset finance, and it is important for you to find the right funding partner to work with.
Unlike some high street lenders, Global Asset Finance Limited can offer financial support to all clients who come to us, irrespective of credit history. We have helped to fund a diverse range of assets, and can even provide you with a quote on smaller ticket items, down to £2,000 in capital value.
We move fast, too. After one free, no obligation conversation with our team of experts, we can often provide same-day quotation. Why not call us today on 07721 565802, or submit an enquiry. https://www.globalassetfinance.com/contact/
We will show you a positive way forward!