Many businesses from a whole host of industries rely on asset finance to spread the cost of expensive goods and grow the business. Not many companies, especially smaller firms, have large amounts of cash to buy essential equipment or machinery upfront – so asset finance allows them to purchase items on a lease basis. Asset finance can prove invaluable to sectors which rely on specialist equipment such as farming, construction and manufacturing.
Asset finance can be a suitable solution for companies who have been refused a bank loan. The only difference between a traditional loan and asset finance, is you have to set out how you will use the money and what will be purchased. What you buy is referred to as an asset. Anything of value which a company requires to conduct business can be classed as an asset.
Here are some of the most popular examples of equipment and assets obtained using asset finance.
Many companies require a fleet of vehicles to operate, whether it’s company cars, trucks or transit vans for deliveries. If the business grows faster and you suddenly need more vehicles to keep up with demand, asset finance can help you manage cash flow.
Machinery or Specialist Equipment
If a company owns a warehouse or a factory, it will need a selection of specialist equipment to operate. It is a huge expense to purchase all of the machinery outright, so asset finance can help companies just starting out or launching a new location. Also, if equipment suddenly needs replacing, asset finance can ensure companies don’t lose too much time out of production.
Most businesses rely on standard office equipment such as computers, printers and photocopiers. Asset finance can be used to purchase or replace these items as required.
If you run a catering business, any kitchen appliances can be counted as assets. You may also need specialist ovens or industry grade applications such as refrigerators and freezers, which can be a large outlay. In these circumstances, asset finance is ideal for kitting out the kitchen and work area with everything you need to run a successful operation.
Farms require a range of essential equipment and machinery, such as tractors, milking robots and crop machinery. When farmers need to replace equipment, asset finance is often the best solution.
Want to find out more about asset finance and if your project is eligible? Get in touch with our experienced asset finance advisors to discuss the options available.