Asset Based Finance in Leeds
What is Asset Based Finance?
Asset based finance, also known as asset based lending or funding is essentially a business loan that is secured by collateral. Asset based finance is usually secured by inventory, accounts receivable, or other assets that the business owns like machinery and vehicles.
As these are secured loans, interest rates tend to be lower than unsecured loans such as overdrafts because the collateral can be liquidated by the lender if a default on repayment occurs.
Asset Financing is more flexible than a business loan because it has tax and cash flow benefits for your business. Asset Finance is an agreement that is used to obtain equipment for your business.
This makes Asset Finance the third most common source of finance for businesses, after bank overdrafts and loans. It can be a flexible alternative to a traditional bank loan, providing significant cash flow and tax benefits for businesses looking to purchase a new or used piece of equipment, a vehicle or other fixed assets.
With many years of experience, Richmond Asset Finance Ltd can help you to gain the important assets for your business to succeed.