Considering
finance options for your next business asset? We run through
the benefits of asset finance as well as looking at the additional
considerations that should be made in order to make the most
appropriate financial decision for your business.
A business is made up of many different assets. Some businesses
are asset rich, and need to be in order to best serve their
customers, others have very few assets (such as internet businesses),
but in most cases almost all businesses will need a range of
basic assets in order to need the needs of their customers.
An asset can be classed as many things, and can include computers,
printing equipment, software licenses, heavy plant and machinery,
vehicles, garage equipment, office furniture, storage, and so
on, basically anything physical that can be used towards the
daily running of the business.
Paying for assets outright with cash can often place a strain
on the working capital of a business. It can also reduce the
future opportunities for the business due to a lack of available
funds at their disposal at short notice.
This is often why businesses look at Asset Finance as a viable
alternative to buying assets outright, thus keeping their much
needed working capital at the bank and spreading the cost of
their acquisition over several years instead.
The
Options available to businesses considering asset finance:
When acquiring an asset for your business, there are generally
3 options:
• Purchase outright with cash, credit card, business loan
or an agreed overdraft facility
• Lease/Hire Purchase
• Lease Rental
Learn
more about these types of finance agreements here
