UK Export Finance (UKEF) and South Korea’s export…
12. Business asset finance explained
Business Asset Finance is an agreement that enables businesses to obtain the assets needed to manage and/or expand effectively and spread the cost/outlay.
Regardless of the size of business, the decision to invest in assets is always difficult but take a look at some of the benefits:
- A great alternative to a traditional bank loan;
- Increased tax benefits;
- Payments can be budgeted according to cash flow; and
- Lenders secure against the asset.
Specialists can advise on:
- Hire Purchase – allows you to buy an asset and pay for it over a period of time, spreading the cost via an agreement with a finance company. An initial deposit is payable; and
- Finance Leases – a rental agreement through which an asset can be obtained for a fixed term. At the end of the initial term, the agreement can be extended, or sold with a rebate of the sale proceeds to the client.
You will need to ensure your management accounts are up to date, you have current detailed lists of debtors and creditors and all assets, and you might need up to date projections before a lender will consider your application. Please talk to us about finance, we can introduce you to finance specialists who have many years of experience and success in advising business across a wide range of sectors.