There are many myths and misconceptions around asset finance. Here are 5 asset finance myths and the truth behind them.
1. A bank is the best place to get business funding
This is such a common myth. Many people think that the easiest route is to go to your bank for business finance, however you’re likely to benefit far more by looking elsewhere and doing some research. There are other lenders out there who can offer you more options and provide quicker access to funds.
2. Only struggling businesses need to use finance
This is not true at all, the opposite in fact. Many of the businesses that we help are not struggling, but who are looking for a funding partner to support their ambitions. If finance is approached in a strategic way it can really help a business to seize opportunities and grow.
3. Asset finance is only used for purchases
Whilst it’s true that asset finance allows businesses to fund big purchases, it is a much broader concept and also relates to when a business uses the asset that they own as security against a loan from an asset finance provider.
4. Loans take a long time to approve
Although this used to be case, technology has advanced so much that you can get approval in no time at all. Applications can be easily completely online and it’s a straightforward process.
5. You need a perfect credit rating to get a business loan
The better your credit rating is, the easier it will be and the more options you’ll have but a business with a less than perfect score may still qualify so don’t write the option off just yet. There are specific loans designed for those who are building their credit score which will have a higher interest rate, but are worth considering.
Want to know more or obtain a quote? Get touch by emailing info@dorsiafinance.co.uk or giving us a call on 01522 420 420. We are an asset finance and car finance brokerage based in Lincoln but work with clients nationwide.
