How does asset finance work?
Rather than a business purchasing an asset outright which includes upfront costs, typically the asset lender purchases the asset and then the business pays a monthly fee for the duration of the agreed term.
Staying ahead of the competition is vital for business success but funding commercial equipment, vehicles or plant can be incredibly costly. Many alternative funding providers offer asset finance as a way for businesses to invest in the latest equipment without incurring significant cash flow problems. In whichever sector you operate, be it construction, manufacturing, logistics or printing, investing in new assets could be more affordable than you think.
In most cases, you can spread the cost of equipment over the lifetime of the purchase. Typical arrangements include hire purchase and equipment leasing. Operating leases are another form of asset finance but you do not have the option to own the equipment once the rental contract has ended. Alternatively, asset refinancing gives you the opportunity to release funds tied up in existing assets.