January 19 2022 Kitty Taylor Asset Finance | Finance

Pen, calculator to show finance calculations

What is Asset Finance?

Asset finance can mean several things, including hiring something, or purchasing an item and spreading the cost. Many businesses use asset finance this to acquire essential equipment that can help them to grow.

It can also be used to unlock capital in something that is already owned. It can be the way to access vital resources in a way that doesn’t make too much of an impact on cashflow.

How Does Asset Finance Work?

From hire purchase to asset refinance, here’s how the most common forms of asset finance work –

Hire purchase enables you to spread the cost of the asset over a set period, after which you will own it outright – just like a mortgage. Hire purchase agreements tend to be at a fixed interest rate, which can be useful for cashflow. For more information on hire purchase, check out our page
Equipment leasing lets you rent equipment that the lender will normally buy and then lease it back to you at a monthly fee. These agreements come at a fixed interest rate, so that you can keep your payments the same each month. For more information on hire purchase, check out our page
Asset refinance allows you to release cash in an asset that is already owned by you. You can use this money to secure a business loan, to consolidate a debt, or to plan for future expenses. For more information on hire purchase, check out our page

What are the Benefits?

Asset finance enables you to get hold of important resources without much strain to your cashflow. It provides an alternative to traditional loans in that an asset secures the finance agreement.

One of the main advantages is that it allows businesses to put their growth plans into action without having to worry about taking large amounts of capital out of the business. It helps companies to access the latest technologies, without having to constantly purchase new equipment outright.

Is it Right for Your Business?

Asset finance can benefit businesses of any size and it is available for both sole traders and limited companies. It can be especially useful for SME’s who are keen to grow and access up to date equipment.

Can Busby Finance Help You?

With access to a wide panel of trusted lenders, we can help you stay ahead of the competition with bespoke asset finance solutions designed to ensure the smooth running of your operation. Our friendly, helpful Account Managers are here to answer any of your questions.