To grow your business, you will most likely need to add some assets. This means that you will need asset finance to be able to fulfill it. So why should you go for this type of financing and is it better than traditional bank loans? This article has everything you need to know about using asset financing to expand your business.
We will be addressing issues such as what asset finance is, if asset finance is the right finance, and assets finance vs traditional finance.
Before we get started, you need to know that there are six industries in which asset financing is pivotal in creating growth and development opportunities. These industries are distribution, manufacturing, retail, services, transport, and construction. If your business belongs to one of these industries, then asset finance can allow you to take control of your business expenditure and help boost cash flow. Now, let’s get started.
What is Asset Finance
Asset finance is an easily accessible and very flexible form of finance. It offers solutions that cover all businesses and industry sectors. In this type of financing, you make arrangements between you and a supplies company Under this arrangement, you enter into a hire agreement of instead of outrightly buying the equipment. When you hire the equipment, you will be required to pay an agreed sum for a period of time that you had upon, which is usually between 1-5 years.
You can access an extensive range of assets under this finance arrangement. Asset financing has a wide range of products that fund the acquisition of physical assets such as machinery, technology, vehicles, equipment, and plants.
When looking for financing, choose a lender who operates in your industry sector. Doing this will enable you to enjoy the benefit of being able to advice that is tailored to your specific industry.
Flexible form of finance
Asset finance solutions are available for a number of situations to business that require capital to pay suppliers, explore growth opportunities, or fund purchases. These situations are:
– Small businesses battling rising costs
– Enables quicker decision times for leaders, which means quicker delivery of equipment, vehicles, and machinery