Asset Finance is a flexible funding solution for businesses to access equipment machinery, vehicles or other high value assets they require in order to help the growth of their business without sacrificing cashflow.
Transport & Haulage, Construction & Associated Trades, Leisure & Hospitality, or even Engineering & Manufacturing. Irrespective of the sector your business lies in, we will be able to get you Asset & Equipment Finance. Reach out to one of our account managers here at Union Business Finance and we can assist you.
Asset and equipment finance can help your business to acquire an asset whilst spreading the cost over time.
You'll be able to free up valuable working capital, alternatively, it can be used to secure additional funds against existing assets and is an alternative to other borrowings such as loans or overdrafts.
Assets take many forms, any object that has value can be converted into cash. There are two distinct forms: Hard Assets which refers to tangible resources with significant value, for example Vehicles, machinery and plant equipment. And, Soft Assets which are typically equipment that have little or no resale value for example Catering equipment. Asset Finance is very often associated with the purchase of high value equipment for a business - may it be, plant, machinery or vehicles.
Say you have a need to grow or have the opportunity to grow your business, but do not have the funds readily to hand nor the desire to interrupt your cash flow - asset finance allows you to spread the cost over a longer term. Aiding the business to deliver their purpose and also generate an income.
The concept of lease or hire purchase is similar to the model offered for individuals. The provider retains ownership of the asset to be leased over the term of the agreement, and leases it to the business for agreed regular fixed payments. Businesses may choose to make a larger initial deposit, followed by smaller payments on an agreed schedule. At the end of the agreed period, the business becomes the owner of the equipment or the business can choose to buy ownership of the item outright with a final option to purchase fee.
With a hire purchase loan/lease arrangement the business is able to spread the cost of a purchase for up to 7 years. VAT is normally paid upfront but the business has the flexibility to defer this payment for up to 3 months.
The business only ever rents the assets concerned. Payment is made with regular payments on an agreed schedule, which normally lasts until the finance provider has recouped the purchase value of the asset. Major difference being the business does not have the option to purchase the asset outright. This is a great option for businesses that need expensive equipment but do not want to purchase them outright.
Within this type of agreement, the asset will always remain the property of the finance company, whilst the customer (you) retain, and use the asset, paying for its hire over the length of the lease term. At the end of the finance lease, the business will be given the option to extend the lease beyond the primary period, or return the asset. If an extension on the finance lease is not required, the asset will normally be returned to be sold on. Alternatively, you could sell the asset to a third party on behalf of the lessor.
Company vehicles are a vital asset and the lifeblood of many businesses. From small businesses to rapidly expanding fleets there is often one common problem; how to finance the purchase of a new van. Well, thankfully, we can help. At Union Business Finance, we understand that time is money and you can't afford to wait weeks for financing. That's why we offer same day business van finance with rates from as low as 6%!
It couldn't be easier to get an application started for your business. Drop us your details by clicking the link below or call us on 01788 892 002 and one of our expert account managers will reach out to you and ensure you get the most from your asset finance solution.