Asset finance is where you obtain finance when purchasing a new asset, and the asset is then used as security against the lending. The ‘asset’ can refer to a number of different items but is most popular with businesses who are purchasing vehicles, equipment and machinery.
It’s a great option for a business. Here are a few reasons why…
It helps with cash flow
Asset finance allows you to purchase the machinery or equipment needed to grow your business, without compromising on cash flow. By spreading the cost of the asset over time you can use the spare capital for other purposes, whilst gaining access to the equipment you need to get to the next level.
Budgeting is made easier
Most agreements come with fixed interest rates so you’ll know how much you’ll be spending over the term, making it easier to plan budgets.
Access to the latest equipment
Your business can gain a competitive edge as asset finance provides you with a way to purchase new machinery; something you may not have been able to afford if you had to pay upfront.
Less risky than a business loan
You won’t get penalty charges if you can’t meet a payment and will only lose the equipment. Nothing else in your business will be affected. In the majority of agreements, the asset itself is deemed suitable security for the loan which means that it’s a more accessible option than more traditional forms of business finance.
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.
