Asset Finance
Fast, flexible finance solutions for business-critical assets
Asset finance is a type of financing that allows businesses to acquire assets such as machinery, equipment, vehicles, or property without having to pay the full purchase price upfront.
It involves obtaining funds from a lender, typically a bank or a specialized finance company, to purchase or lease the asset. The asset itself serves as collateral for the loan, providing security for the lender. The borrower then repays the loan over a fixed period, usually through regular instalments, while having full use and ownership of the asset.
Asset finance is commonly used by businesses to manage cash flow, acquire necessary assets, and spread the cost of purchases over time.
How can my business benefit from Asset Finance?
Asset finance offers several benefits to businesses. It allows them to acquire necessary assets without tying up a significant amount of capital upfront. This can help improve cash flow and preserve working capital for other business needs. Additionally, asset finance can provide flexibility, as businesses can upgrade or replace assets as needed without the burden of ownership.
There are different types of asset finance options available, including:
Hire Purchase
If you require equipment finance, the most popular way to fund asset purchasing is through hire purchase which will give your business complete ownership of the asset once your agreement is paid in full.
VAT is requested in advance but, subject to status, can be deferred to ease initial cash flow outlay. Terms are flexible from 12-84 months, and both new and used equipment can be considered. Contact us today at Liquid Corporate Finance to discuss how hire purchase could work for your business.
- Fixed payments over terms to suit your business
- Spread the cost over the life of the asset
- Claim capital allowances on the asset you purchase
- Offset interest charges against pre-tax profits
- Take ownership of the asset once payments are complete
- Low up front outlay as VAT is spread across each monthly payment
- Offset Rentals against pre-tax profits
- Flexible terms and periods can be worked around your cashflow
- VAT may be claimed against monthly rentals
- Options available at the end of the agreement
- Vehicles: Cars, trucks, vans, and other types of vehicles can be financed through asset finance. This includes both new and used vehicles.
- Machinery and Equipment: Industrial machinery, manufacturing equipment, construction equipment, agricultural machinery, and other types of equipment can be financed.
- Technology and IT Equipment: Computers, servers, software, telecommunications equipment, office equipment, and other technology assets can be financed.
- Medical Equipment: Hospital beds, MRI machines, X-ray machines, dental equipment, and other medical equipment can be financed through asset finance.
- Commercial Real Estate: Asset finance can be used to finance the purchase or development of commercial properties such as office buildings, retail spaces, warehouses, and factories.
- Renewable Energy Systems: Solar panels, wind turbines, biomass generators, and other renewable energy systems can be financed through asset finance.
- Construction and Infrastructure Projects: Asset finance can be used to finance construction projects, including the purchase of materials, equipment, and machinery.
- Agricultural Assets: Farming equipment, tractors, irrigation systems, and other agricultural assets can be financed.
- Vat deferments – Defer your Vat for up three months, allowing you to keep your cash in the bank
- Seasonal payments – Suitable for businesses like farmers, who’s earnings fluctuate during seasonal periods
- Step payments – A great option if your business has secured a contract that has a delayed first payment date
Finance Lease
A great way to purchase new equipment or upgrade your existing assets without having to outlay the initial VAT is through finance lease.
VAT will instead be spread across monthly rental instalments. The asset will not show as ‘owned’ on your balance sheet but instead count as a monthly expense. Like hire purchase, terms from 12-84 months are available, subject to approval. Contact us today at Liquid Corporate Finance if you are seeking equipment finance.
What assets can be financed?
Asset finance can be used to finance a wide range of assets, including:
It’s important to note that the availability of asset finance for specific assets may vary depending on the lender and the specific terms and conditions of the financing agreement
How flexible is Asset Finance?
Hugely flexible. Due to our extensive network of lenders, we are are able to offer tailored solutions to fit all scenarios, including:
The terms and conditions of asset finance agreements, including interest rates, repayment periods, and eligibility criteria, may vary depending on the finance provider and the specific asset being financed. It is important for businesses to carefully consider their needs and compare different options before entering into an asset finance agreement.
If you would like to discuss how our Asset Finance solutions can help fund your business, contact us via the details below:
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