Asset Finance
Purchase new equipment or release the capital already tied up in your company's assets.
Asset based lending is essentially lending against any assets that a business has. These can include stock, plant and equipment or even property, and can be used as either a short-term funding solution or (for asset rich businesses) leveraged buy-outs. We also have access to competitive rates for the purchase of new plant and machinery. In a similar way to invoice financing, asset based lending allows you to release much needed funding to help with immediate cash-flow issues.
Guide To Asset Finance
Asset finance is a form of finance that allows a business the use of an asset without tying up its capital. It can be used by a company needing new equipment, or in trying to release the inherent value in capital items already owned - to provide cash-flow or additional working capital, for example.
Ownership of the asset being financed either remains with, or transfers to, the finance company which in turn grants right of use for a specified period. The business seeking finance then makes regular lease payments on the equipment. All forms of leasing are essentially rental agreements with the finance company.
Finance can be provided for most types of business asset for periods between six months and seven years and for amounts ranging from £5,000 to £100 million.
The details of lease agreements to provide asset finance vary, but fall into one of two basic categories:
With a direct lease, a company agrees the purchase of an asset from a manufacturer, distributor or existing owner and then arranges for the finance company to buy it. The lessor (i.e. the finance company) then leases the asset back to the company in need of the asset.
With sale & leaseback agreements, the asset already owned a business is sold to a finance company which then rents it back to the lessee (i.e. the company seeking funding).
Asset finance can be an excellent tool when used correctly - though it is essential to seek expert advice.
Contact Us
Call now on 0800 731 2466 to speak to one of our experienced advisers.
