Your Basic Guide to Asset Finance

As most of us know, historically the first place businesses have sought out for financial assistance has been the bank. These days, however, there are plenty of diverse funding options that offer a broader and more flexible range of choice for businesses. So what is asset finance and why should you be considering it?

What is asset finance?

First, let us look at what asset finance actually is. In short, asset-based finance is an advance that is secured on an asset. You make regular payments over an agreed term with your asset finance provider and, in many circumstances, you can fund up to 100% of the asset value.

What assets can you finance?

We should say, at this stage, that any assets that can help your business grow successfully can be financed using asset finance, no matter your industry. The most important thing, however, is to pick a provider that understands the assets needed in your industry – particularly when it comes to seeing the true value of the asset you’re looking at.

But some examples of assets you can finance include:

  • IT business solutions, desktop equipment & software, infrastructure, storage, mobility, multimedia and more
  • Energy-efficiency technologies as part of a project or stand alone
  • Manufacturing, engineering, construction and plant hire equipment
  • Premises fit-outs: professional fees, building remedial works, fixtures and fittings, office equipment and much more.

Why should you consider asset finance?

Whether you are looking to stay ahead of the competition or you want to invest in the growth of your business, sometimes using cash to purchase assets might not be the best financial option. You need a solution that can be resilient to the many unpredictable market shifts that can occur, which is where asset finance offers a distinct advantage.

Using all your available assets in a flexible way can solve a multitude of problems as well as meet your short term and long term goals. Along with the security of this option, repayments can often be matched to the life of the asset to suit you.

If you’re interested in learning more about asset finance and how it can help your organisation moving forward, download our Management Guide to Asset & Structured Finance