As part of its ongoing day-to-day operations, a business usually requires some form of asset in order to trade. These assets are often large capital items such as:
Regardless of whether new assets are being purchased as part of an ongoing growth strategy, or assets are being acquired to replace existing assets within the business that have reached the end of their useful life and need to be replaced, these items are normally large capital items that require a sizeable one-off payment to acquire.
The problem is many business owners and entrepreneurs feel that if they use cash from within the business to acquire the asset, it can have a negative effect on the cash flow of the business, which of course is far from ideal.
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That said, new assets are an important and integral part of running a business with the result that they need to be acquired. The question then becomes: what is the best way to go about acquiring an asset for the business?
One option is Asset Finance.
Asset finance gives you, as the business owner, the ability to acquire business assets such as equipment, machinery and vehicles by using the asset in question as collateral for the finance being raised.
Asset finance gives you the ability to release cash from existing assets you already own.
Asset finance can help make the acquisition of new assets affordable. This is because asset finance spreads the cost over an agreed period (usually 1 to 5 years), whilst also enabling you as the business owner to keep assets up to date and current.
Asset finance is particularly suitable for small and medium sized businesses, as it allows a business to acquire the assets or equipment it needs in order to operate, and expand, whilst spreading the cost of the asset over an agreed period of time on monthly payment terms that suit the cash flow of the business.
There are a wide variety of options available when it comes to asset finance, with the result that there will be an asset finance solution available to suit your specific requirements and circumstances.
Broadly here are the main options:
If you’d like to find out more about how asset finance could work for your business, book a call with one of our team.