Asset Finance Options – Martyn Cain

Hire Purchase

Hire purchase contracts give you immediate access to assets that you will own outright after completing a series of payments. In general, Hire Purchase agreements will last between 24 months and 6 years. This method may required you to pay a deposit in addition to the agreed installments.

Equipment Leasing

Utilising an equipment leasing option means you do not own the assets at the end of the term. This 'leasing' may involve the lender buying assets (such as large agricultural tools) and leasing them to you for a fixed monthly sum. This can be helpful for those who wish to reduce the strain on capital.

Asset Refinancing

Aimed at businesses that have already invested in equipment and are looking to release the capital held in those assets. The lener buys will buy the equipment from you and lease it back of a period of regular payments.

Could Asset Finance Help Drive your Business?

Assets can be anything that's vital to the operation of your business, or growth of your business, such as plan machinery, vehicles, catering euipment or telephony.

There are options for businesses to avoid using vital capital and risk cashflow when looking for new machinery or equipment. Some companies will not have working capital for large purchases. If you’re thinking about buying assets for your business, it’s also worth being aware of the Annual Investment Allowance (AIA).

Asset finance is also useful for funding growth in your business. If you’re struggling to cope with the demand for your removals firm, you might want to get a second van. Although buying it through asset finance will bring with it a monthly repayment, that second van could lead to a doubling in turnover and therefore a very worthwhile investment.