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What is Asset Finance?

Asset Finance Explained

Asset Finance in the UK is briefly explained in the following paragraphs.  

In simple terms, asset finance is a loan for a tool for limited and non-limited companies.  A tool you need to grow or do business.  But it is based on the purchasing or leasing of an asset. 

More often or not rates are good and can sometimes be better than bank funding rates.  You also don't need to use the bank you currently bank with for your Asset Finance - you can use any lender. 

In essence the lender is looking for you to use the asset to grow your business - in effect the asset will actually pay for itself because the new business it will bring, or allow you to pay for the loan. 

How do you think these large building contractors can afford their 10 million pound machinery?  

They use asset finance for it. That gives them the opportunity to bid for larger contracts - which then pay for the finance.  You can use asset finance for a variety of different types of leases and in different industry sectors.  A few are listed in the menu to the left. For instance it could be a new computer system you need, or a new bus or coach, or simply a van.  In most cases Asset Finance is a great way to free up your business capital while moving your business forward.  

Here are a few benefits

1.  With Asset Finance the Asset should pay for itself from the increased revenue or business it allows you to do. 

2. Rates are competitive so it is not expensive lending.  Sometimes getting Asset Finance gives you a cheaper rate than the banks normal lending rate. 

3. You don't have to put much up front normally.  Therefore you don't drain your working capital. 

4. If you want you can arrange a fixed rate so you can budget easier.

5. Depending on your business situation you may even benefit from tax benefits.   

Visit our quoting page to get an asset finance quote.

 Asset Finance for a business can really transform it, yet a lot of business owners don't even know it exists.  I know of one company who were financing vehicles by another route and as soon as they switched to Asset Finance they literally saved thousands per month.