Working capital is often a source of problem for any business. You need new equipment to grow the business. But funding this investment is a problem.
One way to deal with this, is asset finance is a form of borrowing whereby a business can generate cash from the assets it already owns or fund the purchase of new assets via leasing, hire purchase, and/or refinance. Businesses with a strong balance sheet may be able to take advantage of this form of borrowing with asset financiers able to fund against assets such as trade debtors, stock, fixed assets, and property.
This form of lending can offer significant advantages over cash flow or unsecured lending. For businesses with assets, asset finance is typically more accessible than cash flow lending. For lenders, this is a lower-risk proposition because they can secure their lending directly against assets. The reduced risk with asset finance has other advantages for borrowers. As the cost of lending is linked to risk, borrowing is typically cheaper than an equivalent unsecured cash flow loan. In addition, because lenders see this debt as more secure, the terms attached to the loan are also typically more relaxed, often without covenant or performance tests to meet.
Our asset finance specialists will review your company’s balance sheet to assess its capacity for asset finance and guide you on your options. We work with an extensive network of asset financiers which allows us to source you the best debt package for your business, considering affordability and deliverability for you. Such close relationships also mean that our team can discuss your requirements swiftly and anonymously with debt providers, to give you firm guidance on what level as well as type of funding is available.
