7 Ways Asset Finance Can Help Your Business
There are many ways that you can finance your business. From working capital loans to invoice finance, they provide opportunities for owners to raise the capital needed to help grow their business.
Businesses who are looking to expand may find themselves not being able to afford the latest technology or equipment. Whether it’s down to a poor balance sheet or lack of funds, this can stall the growth of a business.
Asset finance can help entrepreneurs access the assets they need while not worrying about having to take a huge sum of money out to fund their expansion plans. We have put together 7 ways that asset finance can help businesses access the assets they need to grow their enterprises.
Types of asset finance available to businesses are tailored to your needs
Depending on the type of asset you want to finance, there are various types of asset finance to choose from for a business owner.
As any asset can be financed through asset finance, it gives business owners a solution towards acquiring equipment, which is crucial to the growth of your business.
Here are some of the types of asset finance agreements that business owners use to lease business assets from a finance company:
- Equipment leasing
- Finance lease
- Hire purchase
- Operating lease
- Asset refinancing
Free up your cash flow to spend in other areas of the business
Paying for the full cost of your equipment can damage your business’ cash flow. That’s where asset finance can be beneficial, as the payments for leasing a vehicle or machinery can be spread out over an agreed period of time with the leasing company.
It means that you have additional cash available to grow your business or put aside in reserve. Having those options available with asset finance means you have access to the latest technology or equipment that can supercharge your business to the next level.
Asset finance is easier to obtain than securing a loan
Compared with other types of business finance, asset finance is an alternative to riskier forms of lending, such as bank loans and overdrafts. It makes this type of finance easier to obtain for business owners than securing a loan, which comes with high interest rates and no guarantee that you will get the funding for your business.
Access to the latest technology and equipment
Having access to the latest technology and equipment is crucial for many businesses when it comes to having the edge over their competitors.
However, if the piece of equipment or technology you want is unaffordable, this is where asset finance can step in and help. Asset finance can enable businesses to upgrade their equipment without spending large sums of money, thus saving time and improving your business’ financial health.
More flexible approach for accessing finance for businesses
Asset finance is extremely flexible for businesses, which can enable them to have the funding to fund equipment, machinery and vehicles. If a business owner has an imperfect credit history, then it won’t deter the business from being able to access the finance they need to acquire equipment that may be crucial to their enterprise’s growth.
The option to refinance, rent or purchase business assets
Over a period of time, the asset you’ve leased or purchased through asset finance comes with the option to either refinance, rent or purchase the asset. Once the finance agreement has ended, the business owner can then decide whether to own the asset they’ve leased or hire it.
Spread the cost of the asset
The seventh and final way that asset finance can help your business is by allowing you to spread the cost of the asset you are leasing or purchasing over a set period of time. By spreading the cost of your assets through asset finance, you can free up your cash flow to use in other areas of the business.
Asset finance can help businesses in so many ways. Whether you’re looking to purchase new or used equipment or use this type of lending to finance a fleet of electric vehicles, asset financing can ensure that your dreams of growing your business become a reality.
If you want to learn more about how our asset finance products work, speak to our finance expert. They will not only see if you are eligible for funding, but also find the right asset finance type to help purchase the assets you need for your business.