Growing your business with Asset Finance

Published on 8th June 2018 - Last update on 8th January 2019

As a business owner, you must constantly be on the lookout for any new and exciting ways to grow and expand. You simply can’t afford to sit back and rest on your laurels, not with your competitors vying to overtake you. But in order to do so, it’s vital that you have all the necessary resources at your disposal. That’s where Asset Finance can help. A specialist business finance package, Asset Finance contains a wide variety of products that can be used to borrow, purchase or even refinance the assets (equipment, machinery, vehicles or property) that you already own. So if the key to your business’ success depends on the acquisition of high-quality equipment or access to additional funds, Asset Finance could introduce you to a variety of finance solutions that will reinforce and enhance your ability to grow.

Can my business apply for Asset Finance?

Whether your business is in need of specialist equipment, heavy machinery, vehicles or even if you wish to release equity, Asset Finance could be just the finance package you’re looking for.

Whether you’re a start-up, SME or an established firm, Asset Finance is available to all manner of UK businesses, regardless of which sector you operate in. Yet, in spite of the many benefits on offer, many UK business owners are still unaware of how this package actually works and what it can achieve. This is unfortunate since Asset Finance can prove an invaluable pathway to explore, especially if you’ve tried other, more traditional, forms of funding but were rejected, or are seeking to use other methods of asset acquisition.

Looking to invest in your business’ growth? Need to acquire more equipment or release equity in those that you already own? Apply for Asset Finance or learn more about how your business could benefit.

What Asset Finance solutions can I apply for?

What makes Assets Finance such a useful package for any business is the variety of solutions it allows you to work with. Whether you aim to purchase, lease or unlock the equity contained in the assets that you already own, applying for Asset Finance may provide you with the means to do so with complete confidence. This finance type includes solutions such as Hire Purchase, Leasing and Asset Refinance.

Hire Purchase:

If you lack sufficient capital to purchase an asset outright, Hire Purchase is a useful alternative. With Hire Purchase, you could set up an agreement to allow you to eventually gain ownership of the asset in question. It works by the lender purchasing the asset on your behalf from a supplier, and the asset itself is used as collateral. But before you can begin making full use of the asset, you’ll first need to make an Initial Deposit. This is usually in the region of 10% of the asset’s total asking price (including VAT), but is subject to negotiation and, as such, can vary. Once the initial deposit has been settled, you’ll be able to make full use of the asset in your business’ day-to-day operations, providing you keep up with the repayment scheme. Hire Purchase Agreements can last up to 5 years, during which time you’ll need to make Fixed Monthly Repayments, plus interest. Once the agreement has been fully repaid, ownership of the asset is transferred to you.

Leasing:

If your business needs access to a particular asset for a limited time only, or one that quickly depreciates, borrowing the asset that your business requires might be more appropriate. Leasing agreements usually last 5 years, but if the asset is particularly expensive some lenders may allow you to extend to 7 years. During this time, you’ll need to make Fixed Monthly Rental Payments, which take into account the asset’s purchase price and it’s predicted worth once the agreement ends. You may also be responsible for maintaining the asset and setting up an appropriate insurance policy. Depending on the type of lease you choose (eg. Finance Lease, Contract Hire), you can either return the asset, extend the term or upgrade to another model at the end of the agreement.

Asset Refinance:

Another product you may want to consider if you’re looking to raise capital is Asset Refinance. This solution allows to release the equity tied up in one or more of your business’ unencumbered assets (equipment, machinery or vehicles), but temporarily transfers ownership of the asset to the lender. Nevertheless, you’ll still have full use of the asset, providing you keep up with the repayment scheme. Plus, the funds that you could acquire using this method usually have few or no usage restrictions attached. This means that you can use Asset Refinance for any number of purposes in and around your business, including growth plans. Whilst the agreement is in operation you’ll be required to keep up with a Fixed Monthly Repayment Scheme which typically lasts up to 5 years. As soon as the agreement has matured, with all relevant repayments met, you regain control of the asset.

What does this all mean for my business?

With the products on offer, Asset Finance provides you with the means to grow and enhance your business in any way possible. So if success hinges on acquiring additional equipment, replacing out of date machinery, acquiring business vehicles or the use of equity to support growth projects, applying for Asset Finance could offer you all the support you need to drive your business forward and achieve a strong, sustainable future. However, to be certain that you’re choosing the most appropriate and cost-effective solution, speaking with a qualified business finance professional may prove invaluable.

Thinking about applying for Asset Finance?

No matter which sector you operate in, businesses often rely on assets to simply operate. However, acquiring them can be expensive and can easily push you into financial difficulty. But there is another way. Asset Finance could enable you to obtain all the tools and equipment you need to not only maintain your business’ operations but expand them as well. So if you’re looking to penetrate new markets, improve quality or add more services, apply for Asset Finance today or find out more with Rangewell.


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David Harrison

David Harrison

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