What Is Asset Refinancing?
Asset refinancing is an alternative finance arrangement that offers a simple and straightforward way to raise cash against an asset that your company already owns. Depending on the amount of funds required, you can refinance any single or multiple assets. You don’t even have to own the asset outright; refinancing arrangements can be offered on the equity tied up in company property. Refinancing a number of assets is also referred to as debt consolidation.
Richmond Asset Finance offer a number of different asset financing solutions for your business. Asset Finance is a very useful financing option because of the many benefits to your business. A business in any sector can have many financial assets and there are a number of ways to attain finance for these. In recent times this makes it the third most popular source of finance for UK Businesses.
What Are The Benefits Of Asset Refinancing?
Asset refinancing offers a simple, cost-effective and quick way to secure additional finance for ongoing business activities. You can continue to use the asset offered as security against the loan, whilst using the released funds to invest in new assets, such as a larger fleet of vehicles or new company premises. Most asset refinancing arrangements offer structured payment plans to help business owners budget effectively. Interest rates and charges are agreed upfront so you won’t incur any surprises during the lifetime of the loan. Once the loan amount has been agreed, along with associated rates and charges, you will be required to pay fixed instalments on a weekly, monthly or quarterly basis.
ASSET FINANCE IS ONE OF THE FASTEST GROWING FORMS OF FINANCE TODAY – Call us for more information.
Assets can be roughly divided into two categories, hard assets and soft assets, do you know the difference between each?
Asset finance helps businesses of all shapes and sizes to acquire the assets they require to grow and be prosperous.
The types of assets that your business requires to move forward will depend on a variety of factors including your industry, your business plan, and how established the business is.
Generally, assets are said to either be hard assets or soft assets.
Asset finance is most commonly used to acquire hard assets. Hard assets are usually physical, high value items that are essential to a business’ operation. This could include the following:
- Commercial vehicles
- Manufacturing equipment
- Printing presses
- Construction vehicles
- Plant equipment
- Engineering equipment
- Agricultural machinery
Financing hard assets provides finance companies with good security as the assets tend to retain value for many years, even at the end of their lease.
Soft assets may be more difficult to obtain with asset finance as they pose a bigger risk to the finance company. Soft assets are lower value items and have little or no value by the end of their lease. Examples of soft assets include:
- Computer hardware and software
- Office furniture
- Security systems
- Air conditioning systems
- Electronic Point of Sale systems
If you require soft assets, then you may still be able to acquire them using asset finance by providing some additional security. This could include a deposit towards the asset, a director’s guarantee, or securing the asset with another existing asset to offset the risk. However not all asset finance companies will provide funding for soft assets.
Find out more about our asset finance solutionshere at Richmond Asset Finance by giving our team a call on 0113 288 3277 to discuss your requirements in more detail.
Advancements in technology mean that we could soon see smart farming dominating the agricultural industry.
Farmers are likely to become increasingly reliant on farm machinery finance to help them gain the new machinery and equipment they require to keep pace with technology and stay competitive.
Just a handful of the high-tech agricultural equipment set to automate farmers’ jobs include:
Sensors– Sensors can be used on the land or in machinery and equipment to gather and share information and data. Sensors can be placed in fields to gather data about the condition of the soil, or in machinery to track information about yield or condition of machinery. This information can then be accessed by the farmer from anywhere, allowing them to make the relevant changes necessary to optimise crop growth.
Drones– Drones are already being used by farmers in the US for a variety of tasks including monitoring crops and spraying chemicals.
Driverless tractors– Automated, driverless tractors can operate all day and all night, to get the job done quicker and more efficiently. Future farmers may also be able to link their tractors to sensors and drones, giving them access useful information about the field that they’re working.
Robot pickers– Picking crops is a labour-intensive task which can be completed quicker and more efficiently with the help of robots that work 24/7. Using robot pickers would also significantly reduce labour expenses.
To find avoid getting left behind, find out more about our farm machinery finance options by giving our team a call on 0113 288 3277.
Sustained growth in asset finance
New figures released today by the Finance & Leasing Association (FLA) show new business in the asset finance market up by 6% in June compared with the same month in 2013, and up by 10% in the first half of this year.
The continuing broad-based recovery is evidenced by solid performances in plant and machinery and commercial vehicle finance, with growth of 19% and 18% in the first half of 2014.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The first six months of 2014 have seen sustained growth in asset finance which has helped support the recovery in key sectors of the economy. So far this year, more than 60% of asset finance new business went to support business investment by SMEs.”