It is a financial solution for companies that need to purchase equipment without paying for it up front. With asset finance packages, hire purchase and leasing, you can breakdown the payment of your assets into monthly, bite-sized chunks. This makes the investment much more affordable and has less of an impact on your cash flow. It also allows you to develop and grow your business without experiencing hold-ups while you wait for the cash available to make the purchase you need.
Whatever your business, in order to achieve growth, it is likely that you will need invest in assets along the way. This may include the purchase of equipment, new computer systems and software, new machinery or a commercial vehicle, all of which can involve a significant outlay - something not all businesses have the ability to accommodate through cash flow.
With asset finance, you have the ability to spread the cost of investment, breaking these down into more manageable payments. This helps to make the investment more affordable and has a lesser impact on business cash flow, allowing you to concentrate on making your enterprise thrive. It can also yield tax benefits, although it is always advisable to consult with your accountant. The exact terms of your agreement for asset financing depend on whether you choose to use hire purchasing, leasing or refinancing.
Whereas banks are unlikely to lend money on assets without security. Asset finance is a popular option for you to acquire vital items quickly and easily for your company, without overstretching your finances in the short term. Using asset finance makes it possible for you to keep your accounts on track while still being able to move forward with your business ideas, because it allows you to invest in the equipment you need.
Asset finance gives you the opportunity to purchase a higher standard of equipment for your business than you might have been able to otherwise and, as long as you keep up the regular payments, the agreement can't be cancelled - so you won't be left high and dry without the asset you need for the smooth running of your business.