Asset Finance: Basics
Asset finance is an investment that businesses acquire to attain high-value equipment or assets that are supposedly essential for the growth of the business in the respective market. It is a practice of borrowing funds or loans by using a company’s investments or balance sheet assets as a security.
Most of the time, entrepreneurs and small businesses stop growing beyond a certain point, even though the potential is there. Sometimes it is the lack of opportunities that become the key hurdle, but most of the time, it’s the lack of funds required to purchase the equipment that can help it grow. Asset finance is both that opportunity and support that can be used by any organization in need of that financial assistance that can help with that additional push.
Whatever the size of your business, asset finance can offer significant benefits when it comes to your borrowing needs. When you need to keep tight control over your cash-flow and working capital, asset finance offers advantages for sourcing new equipment.
The key benefits of choosing asset finance for your organisation include:
Minimise ownership risk: Remove the risk of how much value remains in the asset at the end of the contract.
Delivers funds efficiently: The security contained within the asset can result in prompt turnaround of credit applications.
Eliminate uncertainty: Fixing the rental costs and payable interest for the duration of the contract helps your business plan for the future by eliminating uncertainty and costly surprises.
Cut wasted spending: The rentals reflect usage of an asset for a portion of its usable life – this is an important value added benefit where you expect to use it for part of the asset life.
Lack of Debt: Making use of asset finance allows you to keep your organisation’s borrowing options open.
Stronger Cash Flow: Small, regular lease payments free up your cash flow. This enables your organisation to adapt more easily to changing business conditions.
Clear Budget Management: Paying a fixed monthly amount over a defined period of time makes for more straight-forward budget management and financial planning.
We can help you identify the next step towards obtaining asset finance. It could be a complete overhaul of your technology infrastructure, a few extra vans, a company car, or new plant and machinery.
Our team of financial experts aim to aid you in source the funding your business needs, every step of the way. Highly experienced and always approachable, we pride ourselves on our knowledge of the market and levels of customer service in which we offer our clients.
If you want to learn more about our finance packages, call us today on 03 8838 8726.