Asset Finance is fairly straight forward and usually a lot easier to attain than trying to acquire a bank loan. Ultimately, it involves a lender providing the finances a business may not have access to, in order to purchase the resources required to help them succeed.
Although it may seem overwhelming, to help you decide whether Asset Financing is the best option for you, we’ve pulled together the 6 easy steps you’ll need to go through.
1. First, let’s assess your business goals
This can vary from business to business and depend on a lot of factors: A start-up company looking to market their product might prefer a Hire Purchase where they can spread initial costs over a period of time. Whereas a more establish company who are looking to invest in the latest technology to compete with their competitors, might be more suited to Equipment Leasing.
The important thing is to know at what stage your business is at and what your priorities are in order to move forward.
2. Finding the right finance for you
Once we’ve established what you need, we can work with you to find the right repayment option. With 4 different types of Asset Finance available, you can look to either rent, borrow or eventually buy the asset you need. To find out more about these different options, read our blog on The Best Type of Asset Finance for you.
3. Are you eligible for Asset Finance?
Now we know what you want and have chosen the best financial option, we have to check you’re eligible. This usually takes about 24 hours and involves assessing several areas of your business such as its credibility; lenders will want to ensure your investment will pay off and that you’re in a secure position to stay true to the financial agreement. We’ll also review your industry to ensure there are no risks within its sector.
4. Reviewing your financial options
Once we’ve confirmed you’re eligible for Asset Finance and established the resources you need, whether it’s technology, equipment, premises etc., we’ll then review your current financial situation and work with you to agree the most realistic repayment terms. These will be set over an agreed period of time and are tax deductible.
5. Creating your finance agreement
Based on the information gathered in step 4, we’ll set up all the paperwork and financial agreements ready for you to sign. This is your chance to review everything and make any adjustments if needed.
6. Receive your assets
The final step – receiving your asset! The best part of Asset Finance is that you can use the asset throughout your repayments, meaning there’s no delay in developing your business.
As you can see, applying for Asset Finance is extremely easy and offers a lot of benefits. If you feel this is the way forward for you, then get in touch with our experienced and friendly team who can discuss all your options.