Asset Finance & Asset Based Lending

What is Asset Finance?

Asset Finance is a powerful funding solution that enables businesses to acquire new assets - such as machinery, equipment, vehicles, and technology - without having to pay the full cost upfront. Instead, you can spread the payments over time, making it easier to access the tools your business needs to grow, while preserving cash flow for other essential business activities. Asset Finance also allows businesses to use their existing assets to secure the capital they need for growth or investment.

There are three types of asset finance we work with:

• Hire Purchase: Spread the cost of purchasing an asset over a fixed period. Once you've paid off the loan in full, the asset is yours to own.

• Leasing: The lender purchases the asset and rents it to you for a monthly fee. At the end of the lease term, you have the option to extend the lease, pay the remaining balance to purchase the asset, upgrade to a new model, or return the asset to the lender.

• Asset Refinance: The lender buys the asset and then finances it back to you, or uses it to consolidate existing debt or secure other deals. Depending on your situation, lenders typically offer funding of 80%-90% of the asset's value.

How does Asset Finance work?

1. Quote: You provide us with details about the asset type, value, and deposit amount, as well as your business and financial information. Based on this, we'll provide you with an estimated quote for your financing options.
   
   
2. Application: To move forward, we'll submit your business and financial details, along with a detailed specification of the asset, to the lender for review.
   
   
3. Approval Process: The lender evaluates your business's financial health, cash flow, and the asset's value to determine the loan amount. This may include a quick asset valuation to confirm the asset resale value.
   
   
4. Agreement: Once approved, we prepare the necessary documentation for your signature. The funds are then released directly to the supplier (if you're purchasing new assets) or to your business bank account (if refinancing an existing asset).
   
   
5. Repayment: You'll make fixed monthly repayments over the finance term (usually 3-5 years), keeping your repayment plan predictable and easy to manage.

Is Asset Finance suitable for my business?

Whether you need new equipment, machinery, or vehicles to drive productivity and efficiency, Asset Finance allows you to access the tools you need without a significant upfront cost.

Asset Finance is ideal for businesses looking to:

• Improve business operations: By financing the purchase of new assets, you can modernise your business operations, enhance your service offering, and stay competitive.
  
  
• Spread the cost of new investments: Rather than depleting cash reserves, Asset Finance lets you spread the cost of new assets over time, improving cash flow and enabling investment in other growth areas.
  
  
• Maximise tax benefits: Depending on the type of asset and financing agreement, you may be able to claim tax relief on your monthly payments, making this an affordable way to finance new equipment. This should be discussed with a qualified Tax Advisor.
  
  
• Get lower-cost funding by using your existing assets as collateral. This is often more cost-effective than an unsecured business loan.
  
  
• Invest in what your business needs now, rather than what you can afford now.
  
  
• Grow your business whilst protecting your cash flow

What is required for an application?

To apply for Asset Finance, you will typically need to provide:

• Asset Details: Information about the asset, including type, make, model, value, mileage/usage, supplier, and any specific model specifications. If you're purchasing, a supplier invoice or quote will typically cover all of these details.

• Financial Information: The latest full financial accounts (and up-to-date management accounts if available), along with 6 months of business bank statements.

• Director's Information: Full names, dates of birth, and address history for all company directors.