what is asset finance?

What is asset finance?

Asset finance is a loan that is used to obtain plant and equipment.

When businesses invest in tangible assets, anything from an office copier to a printing press, they usually need an affordable, secure means of finance whilst keeping back any cash to run the business from day to day.

Asset finance fits the bill. It is the third most common source of finance for businesses, after bank overdrafts and loans. It is also of growing importance in the public sector.

So why use it?

Asset finance is a flexible alternative to a traditional bank loan, providing significant cash flow and tax benefits for businesses looking to purchase a new piece of equipment or other fixed assets.

Asset finance is:

  • Secured on the asset being financed, reducing the requirement for additional collateral
  • A useful alternative to conventional bank loans
  • Secure for the user, as the finance cannot be called in during the life of the agreement if the payments or rentals are paid
  • Sustainable because businesses have the option to replace or update the asset at the end of the lease period
Call Peter on 01908 262662 to discuss your asset financing requirements