What types of assets can be financed through asset finance?
All kinds of assets can be financed – vehicles, machinery, equipment, technology and furniture to name a few. Even intangible assets such as software licenses.
Why choose asset finance over a traditional bank loan?
Asset finance has lower upfront costs, flexible repayment terms, and it won’t affect existing credit lines. Plus, asset finance is often quicker and more straightforward than traditional loans.
How does asset finance work in terms of ownership of the asset?
The ownership structure in asset finance varies depending on the type of agreement. With options like Hire Purchase, the business takes ownership of the asset once all payments have been made. With Finance Lease, the asset remains owned by the finance provider, but the business has the right to use it for an agreed period in exchange for regular payments.
Is asset finance suitable for businesses of all sizes?
Yes, whether you’re a small start-up or a big corporation, the flexibility and scalability of asset finance means it can suit nearly every need and budget.
What happens at the end of the asset finance agreement?
There are several options, depending on the type of agreement. For example, with Hire Purchase, the business may have the option to purchase the asset outright for a nominal fee. In a Finance Lease agreement, businesses may have the option to renew the lease, upgrade to newer equipment, or return the asset to the finance provider.
