In this article we look at the advantages of asset finance. If a business is looking to grow and expand, it needs to have the right assets in place, however, in many situations, these assets can carry a hefty price tag. For many small and medium-sized businesses, investing in business assets can be too much of a stretch for cash flow, however, asset finance could provide the ideal solution. Asset finance will enable businesses to purchase the assets they need, without having to pay upfront. Instead, the price is spread across fixed monthly payments with a timeframe to suit the business’ budget.
Access the best tools and equipment
Many businesses need access to the best tools and equipment, to ensure their operation is as efficient and competitive as possible. Computer hardware and software can often be an expensive investment for a small business, but asset finance will enable the company to purchase items which would have otherwise been out of their price range.
Protect cash flow by spreading costs
The repayments will be divided into affordable monthly amounts, with many businesses benefiting financially from the improved efficiency and quality of work that the new assets provide. Even if your business has access to the capital needed to purchase assets upfront, it could leave your cash flow depleted and you may no longer have the funds available to cover unexpected expenses. Asset finance will allow your business to protect its cash flow so that you always have the buffer you need to grow.
In most situations, asset finance is easier to obtain than traditional loans, making it ideal for businesses with a less than perfect credit history. It is worth noting that the asset itself is used as collateral, which means that if your business does default on payments, you will risk losing the asset. In addition, most agreements will offer fixed payment amounts, which makes it easier to budget. There is no need to worry about fluctuating interest rates and you are protected from changing currency rates. Whatever happens, the amount you pay each month will remain the same for the duration of the agreement.
Advantages of asset finance – where to find out more
Our asset finance solutions are designed to bridge the gap between businesses and vendors so that assets can be sold in an affordable and manageable way. Read our page What can be financed? or to find out more about our quick asset finance solutions, please contact our team today.