WHAT ARE THE BENEFITS?

Benefits of asset finance

Asset Finance is simply a range of financial products through which a company can acquire new assets. The range of assets is broad though typically includes new and used vehicles, commercial and heavy goods vehicles, equipment and machinery. Generally, if an asset is moveable then it can be funded through asset finance. Once the necessary identity and business checks have taken place, finance can usually be arranged easily and many companies find asset finance useful to keep their assets up-to-date, without resorting to often expensive loans and overdraft extensions.

Asset Finance helps save working capital. Purchasing new equipment requires a large capital outlay that often prevents the company investing in other areas of the business where cash flow is key. It can be a important resource when responding to opportunities such as fulfilling new contracts where investment in new assets is necessary. Asset finance can usually be arranged in a relatively short time.

Asset finance can help with budgeting. Consistent, fixed payments over an agreed period of time, can remove the worry of fluctuations in interest rates.

Asset finance is also useful in maintaining existing credit lines - with asset finance, credit lines already in place with a bank or other financial institutions can remain.