We’ll connect you to flexible asset finance solutions. Split large lump sums into more manageable payments. Get started now!
Asset finance allows businesses to get crucial equipment without dropping a large amount of money upfront. Instead of a lump-sum payment, businesses opt for agreed-upon payments over a set period.
This means businesses can get quicker access to the assets they need, minus the financial shock. It’s about spreading the cost over time, making regular payments during a fixed term, with additional fees and interest in the mix.
Whether it’s equipment leasing, hire purchase, or using existing assets, asset finance offers a variety of moves in its toolkit. If you’d like to enquire about asset finance, contact us today!
Asset finance is a financial tool that allows businesses to split the cost of asset payments across a period.
Here is how it works:
1.
Choose the type of finance
Decide the type of asset finance that suits your needs. This could be equipment leasing, hire purchase, or asset refinance.
2.
Agreeing on Terms
You and the finance provider agree on the terms of the deal. This includes the duration of payments, interest rates, and additional fees.
3.
Payments over time
Instead of forking out a large sum upfront, you’ll make smaller, regular payments over a fixed period. Easing the burden and allowing a more manageable cash flow.
4.
End of term
When the agreed term concludes, you might take ownership of the asset, return it to the finance provider, or explore other options.
Asset Finance is a good option for a range of businesses. It helps those in expansion, start ups with limited capital, and cash flow managers looking to avoid sudden financial strains. Businesses with existing assets can also tap into asset finance through refinancing options.
Essentially, there isn’t a business that can’t benefit from asset finance. It’s helpful to different appetites of businesses across various sectors and stages of development.
Fast & Flexible
Expertise & Experience
Tailored Solutions
Asset finance is a strategic financial tool, that preserves capital, facilitates growth, and enhances cash flow management.
Here are some key benefits of asset finance:
Preserves capital
Asset finance allows businesses to make manageable payments over time instead of a large upfront investment. This flexibility keeps their financial resources available for other commitments, enhancing agility.
Businesses can enhance their competitiveness by acquiring the latest equipment whilst avoiding the burden of upfront costs.
Asset Finance offers tailored solutions, with options such as equipment leasing, hire purchase, or asset refinance. This adaptability makes it suitable for all businesses of different sizes, industries, or financial positions.
Opting for asset finance helps businesses manage cash flow efficiently. Regular payments over the agreed term prevent sudden financial strains, allowing for better budgeting and stability.
The cost of asset finance can vary depending on the specific factors, including:
Typically, the cost of asset finance is between 5 – 15% of the value of the asset. However, the actual cost could be higher or lower.
You can finance a wide range of assets, including:
Hire purchase: This is where the business pays an initial deposit and then monthly instalments until the asset is paid off. At the end, the business can either purchase the asset or return it to the provider.
Leasing: This is where the business leases the asset over a fixed period. At the end, the business can either renew the lease, return the asset, or purchase it for a fee.
Asset refinance: This is where the business refinances an existing asset finance agreement. This can be done to lower the interest rate, raise cash against existing unencumbered assets or extend the term of agreement.
These will vary depending on the type of finance you choose, but they will typically be fixed. You’ll know exactly how much your monthly repayments will be.
This varies depending on the lender, but it typically involves the following steps:
“Jonathan from Smart business Finance is always there to offer advice and to point us in the right direction to any questions we have and to tell us of the best deals for finance for our company. We have no problem in saying we as a company would use these people at any time“.
East Coast Logistics Ltd
‘We have dealt with the Team at Smart Business Finance for over 3 years. They introduced me to my finance partner and have since helped to source a credit protection policy for me. Jonathan has gone above and beyond for me through our business transitional period.
Higher Healthcare
“Extremely helpful and friendly; they found the best service that suited my business needs. Always checked in to see that I was happy with the services after. Their dedication to ensuring my satisfaction and the exceptional level of service they provided truly exceeded my expectations.”
Prioritising People
When choosing a factoring company, businesses must decide between independent factoring companies and traditional bank factors. In this blog, we will discuss four reasons why independent factoring companies are the better choice for businesses.
Invoice finance offers a wealth of benefits for businesses, yet it is often faced with scrutiny, due to the misconceptions that cast doubts on its
Both types of facility enable a business to release cash early from funds tied up in both existing and ongoing sales ledger balances. There are,
Ready for a smart business finance solution? Call us at 01246 792082
Smart Business Finance is an independent business finance broker based in Chesterfield.
