From time to time all businesses need to invest in equipment to enable growth, or to replace existing equipment. Perhaps you are a small business, keen for growth? Or perhaps a start up business that needs a little extra help? Cashflow is an essential component to any business and the cost of high-value equipment can make a sizeable impact on tight margins. Asset finance can help to keep you in the black, whilst investing in your business and creating a capital injection, without creating a hefty impact on your cashflow.

What is ‘Asset Finance’?

Asset finance is a broad term which refers to leasing assets in exchange for agreed payments. It is important to be fully aware of the impact of your chosen finance method on your cash-flow, and available funds for growth. Asset finance proves to be a flexible, low impact option and provides fixed terms on loans against the equipment that you require to grow your business. Over the past few years, there has been a growing surge of businesses choosing asset finance over more conventional lending options.

Who is Asset Finance for?

Asset finance can be used in almost all business structures and can provide assets to a business of any size. Over recent years there has been significant increase in the use of asset finance for small businesses – helping them to achieve growth.

Why don’t I just get a bank loan?

As asset finance is secured against assets, funding is easier to obtain than a bank loan. The rate of interest is often significantly better than most commercial loans. In addition, using asset finance leaves your alternative funding lines, such as overdrafts and loan facilities, open to be used for other business requirements.

How would it benefit a business like mine?

If the idea of purchasing expensive equipment leaves you concerned about the detrimental effect that it will have on your budget, asset finance allows you the option of using just a fraction of your capital compared to purchasing up front. The money that would otherwise be tied up in equipment can be used in other areas of the business or set aside to ensure there is plenty of working capital for any opportunities or downturns the business may come across.

Perhaps you have old equipment that could benefit from an upgrade to a newer, more efficient model? The flexibility of asset finance allows businesses to invest in their business, prepare for growth, develop new services and improve on performance.

What different types of
Asset Finance are there?

It is important that you choose the type of finance agreement that it right for you, and it is prudent to discuss your requirements through to ensure you receive the correct option. These options include; finance lease, hire purchase, contract hire and operating lease agreements to name a few. Each of these vary, for instance hire purchase agreements require you to pay the VAT up front and often include a deposit, followed by fixed monthly instalments, after which you have the option of owning the asset outright; On Finance Lease the VAT is paid to the supplier by the finance company reducing the initial outlay. Contract hire and operating lease can be the right option for certain types of businesses or certain types of equipment. For further information on the various options, please give Busby Finance a call and we will be happy to talk you through the options. Call our catering expert, Alex Taylor on 07761 800 559.

What kind of things could I buy using Asset Finance?

Asset Finance can give you access to virtually any equipment from a new frying range or item of catering equipment to a restaurant fit out including partitioning, lighting, suspended ceilings, refrigerated and display counters, even flooring and a whole range of things in between. Outside of catering and hospitality, asset finance can be used for agricultural equipment, vehicles, scaffolding, marine vessels and satellite dishes to name but a few. If there’s an item of equipment or an element of fit out that can progress your business development, then there is a good chance that it can be provided for you on asset finance. Feel free to call to see if we can help with any requirements you have whatever the asset.

What is the benefit of asset finance, as opposed to paying for equipment outright?

Over the past few years, there has been a growing surge of businesses choosing asset finance over outright purchasing. This is because paying for assets outright can cause a strain on your existing capital and the impacted cashflow can disrupt forecasting and budgeting. Asset finance allows you to budget effectively because monthly costs are usually fixed, so are not affected by fluctuating interest rates. In addition, finance lease products can allow for substantial tax savings against your corporation tax bill.

How we can help:

Personalised tailored solution from your individual account manager – you deal with your own account manager and no one else. We pride ourselves on having the best customer service in the industry.

Experienced Account Managers- each Account Manager is a highly experienced member of staff with a wealth of experience in the industry. You can be confident that they can find a solution to most problems but if they can’t we have a team of agents from other sectors supporting them to ensure we get you the solution you require for your business.

Speedy response times. Most applications are approved within 24 hours and can be approved, signed and paid out in 72 hours.

Want to know more?

Whether your requirement is urgent or longer term, please request a consultation today with no obligation quote. Contact Alex Taylor on 07761 800 559 or email: alex.taylor@busbyfinance.co.uk.