Asset Finance helps with your business acquire assets to stimulate growth.
Lender purchase asset, monthly repayments.
Release equity in existing assets, to stimulate further growth.
Helping Your Asset Finance Needs
Overview of Asset Finance
Asset finance is a type of lending that enables you to acquire the assets your business needs to grow and operate to its full potential, by spreading the cost of purchase.
It applies to equipment, machinery and vehicles and can also be used to release cash that may be tied up in assets you already own, by way of refinance.
Asset refinance is a way of utilising existing assets and making them work harder for you. A refinance can help provide a helpful injection of working capital into your business at a time when it needs it most. Businesses of all sizes can benefit from the introduction of working capital for a variety of reasons, including expansion, new contracts or setting up new projects.
Refinancing is usually only available on assets, such as: equipment, plant and machinery and vehicles, that the business owns in full and not those that are currently subject to any existing or outstanding financing arrangements.
As with conventional asset finance, once a business asset is refinanced, the finance company takes ownership of the asset and the business makes agreed monthly payments over the contracted period until the sum, plus any interest, is repaid.
Hire Purchase (HP)
These agreements differ from other lease agreements in that the customer is expressly offered an option to purchase the asset at the end of the term.
The finance company retains ownership of the asset until the option is exercised. Whilst you are still making payments, you are not allowed to sell or dispose of the asset without the lender’s permission. The lender will be able to repossess the asset if your business falls behind with payments.
The key features of an Hire Purchase Agreement:
- The lender purchases the asset
- The funding is secured against the asset
- You repay the finance company over an agreed term
- You will typically pay all the VAT up front