Funding Solutions

Asset Finance

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What is asset finance?

Asset financing is a type of business loan that is secured by assets or collateral. Typically asset finance will be required when a company wants to purchase a new piece of plant and machinery, equipment or vehicles. The finance being secured against the specific asset of the company. Also it is possible for finance to be raised against assets already owned by a company, the finance company would carry out a valuation of the assets before deciding on the maximum amount which they would be prepared to fund.

Interest rates for asset finance products are usually lower than other forms of credit or unsecured loans because if the borrower defaults on the repayments, then the lender will be able to seize the asset(s) and sell them in order to recover their loan. The interest itself will vary depending on the size of the loan and the company’s credit worthiness, as well as the type of asset(s) and their realisable value should the finance company need to take possession and sell to recover amounts owed.

Why choose asset financing?

Asset finance is usually a cheaper way of generating immediate funds, releasing cash from a company’s existing asset base. Or alternatively it allows a company with minimal cash reserves to acquire a new piece of plant and machinery immediately and pay for the loan over a manageable period. Usually decisions can be made fairly quickly on asset finance applications, provided that the lender is satisfied with the valuation report – it is therefore a quick way of raising immediate funds for working capital within the business.

Find out more about asset financing

Asset financing is a good way for businesses to get fast access to finance quickly. There are a number of lenders in this marketplace, some are more specialist whilst there are others who will provide funding against a company’s soft assets e.g. office equipment.

For more information on types of asset finance and how ICS can help guide you through the process, please visit our contact us page and fill in the form to get in touch or give our team a call on 0800 731 2466.

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