Having many years experience financing assets for clients, we can help businesses acquire equipment, machinery, vehicles etc., in addition to raising capital from assets already owned, via our refinance options.
As an independent advisor and broker we can arrange facilities regardless of the size of your business, through the panel of lenders we work with, thereby ensuring the best and most suitable options.
Asset finance is an ideal form of lending to spread the cost of acquiring new assets for your business, tailoring the repayments and term to individual needs. The different options also help to maximise your tax position depending on whether you ultimately purchase the asset or lease it.
Options for financing assets include:
Hire purchase
The most traditional form of asset finance for ultimate outright purchase. The facility term can be structured to suit the nature of the asset and your business cash flow requirements from 12 to 84 months, include seasonal payment patterns and a residual (balloon) payment can be included to lower the monthly repayments. Interest charges can be calculated on both fixed and variable rates.
Finance lease
Unlike Hire Purchase, ownership never passes to the lessee in a Finance Lease agreement. The finance company owns the asset which they then rent to you over the period of the agreement. At the end of the contracted period, you have the option to either keep hold of the asset and enter a Secondary Period and pay a reduced rental, sell the goods to a third party on behalf of the lender or return the asset to the finance company.
Operating lease
An operating lease is a form of lease where you rent an asset for an agreed period, much shorter than the item’s useful life. An operating lease can also be referred to as contract hire, particularly if it relates to vehicles, and it’s a simple way to have the use of assets for your business without tying up excess capital. Features of an operating lease can include lower up front payments, short term agreements, tax efficiency (rentals can be offset against profits) and maintenance plans can be included.
Refinancing existing assets
Using assets you already own as security is a quick way to raise capital for your business. Whether to raise funds for a deposit, settle existing finance, fund a new project or assist with a business acquisition or Management Buy-out, asset refinance is an attractive option. With our experience we can advise on the most suitable assets and lenders to help achieve your requirements.
