Asset
Finance - Business Finance
About
Asset Finance
There
are some real reasons why you should use finance to fund your equipment
purchases. If you use up your valuable cash reserves to fund capital
investment, then it reduces your liquidity and limits future investment
opportunities. An increasing number of equipment purchases are funded
by using other sources of finance; such as asset finance. Asset
Finance is the provision of credit or leasing facilities to help
obtain your acquisition of business assets. Security is primarily
taken on the asset concerned and is normally a stand-alone facility.
The cost is spread over a period up to the useful life of the asset.
Assets
that can be funded in this fashion are usually of a tangible nature
with a readily available resale market. Assets with a slow resale
market or high degrees of specialisation are generally better funded
by other methods.
Asset Finance - The Benefits
- The
cost of the asset can be linked to the income it generates
- It's
a relatively easy to arrange
- The
rental profile is agreed in the beginning allowing cashflow management
- It's
a stand-alone facility that leaves other forms of credit intact
for working capital
- Unlike
an overdraft, asset finance is usually non-cancelable providing
the agreement is maintained correctly
Typical assets that are suitable for Asset Finance:
- Cars
- Light
& Heavy Commercial Vehicles
- Unspecialised
Machinery
- Plant
- IT
Hardware
Typical assets that are unsuitable for Asset Finance:
- Land
- Buildings
- Redevelopment
- Research
/ Project Work
- IT
Software
List
of Business Finance Providers
OCIS
provide general financial information, we urge you to consult an
Independent
Financial Adviser ( IFA )
before making any important decisions about your finances. |
