Getting the tools for the job
A business could be looking to either obtain an asset for expansion or release money from assets they hold within the company. Both circumstances are covered under asset finance. Asset Finance is a secured form of business finance. It can be seen as an asset loan with a loan simply offered against an asset.
Pinnacle Business Finance Brokers
Leasing - Leasing vans, cars and machinery are becoming very popular for a multitude of reasons, with one of them being the removal of stress. For example, when leasing a van for a courier business, it takes out a lot of pressure of repair bills and a huge upfront cost. By leasing a van, a deposit is taken at the start of the term with fixed monthly repayments. The lease can include maintenance packages to cover breakdowns and servicing costs. In the agricultural industry, asset finance is pivotal to their success because of the value of the equipment.
Asset refinance - This is where a business refinances equipment they own to release funds that they may use in other areas. For example, if they are a printing company that owns a wide format printer and wants to refinance it, a funder will buy the asset and give them a payment. Then the funder will lease it back to them, so they own the asset at the end of the term. Asset refinances can be very effective if a business doesn't need to take on additional finance but instead utilise the assets they already own.
Simple asset finance
With Pinnacle Finance Brokers in the South West
The Term of Finance Available - The time frame in which asset finance is taken over is negotiable depending on the funder. When the term is fixed, the monthly repayments will be set accordingly. The daily, weekly or monthly repayments will vary depending on the duration of the asset finance. This will be either a balloon payment at the end of the term or owning the asset. This will vary on the type of finance which you decide on. Of course, we will be there to support you through the whole process.
How much it will cost - Asset finance rates can vary depending on a multitude of factors with one of them being the lender. Pinnacle Business Finance will secure the best deal using preferential rates and industry experience. We will ask for the required information up-front and take all the hard work away. We will liaise with the funders which we have an established working relationship with to get the best facility possible.
When deciding whether you need asset finance, asset refinance, asset loan, or leasing, Pinnacle Finance is here to help. Some lenders have areas of expertise and will offer preferential rates to reflect this. Pinnacle Business Finance understand and know this so therefore we will approach the lenders that will allow your business to grow.
Points To Consider
Understanding Asset Finance
Balance Sheet – You may wish to use the finance to purchase an asset. Although it will initially show as a liability, once repaid, that asset is now on the balance sheet.
Cash-Flow - When leasing an asset, this can improve daily working capital as you, the business won't have such a significant upfront cost. This will aide the company in planning a cash-flow projections showing monthly outlays. When leasing expensive assets, this can bring high maintenance costs, so by having a maintenance package included, this can eliminate the unexpected costs.
New Equipment - Obtaining new equipment can be very costly with high initial outlays so by leasing the equipment this may negate this.