Can Asset Finance Skyrocket Your Business?Sam Sandhu
After the struggles of Brexit uncertainty, figures from the FLA show that asset finance is on the up with an 8% growth in 2018 compared to 2017. While business equipment asset finance saw an increase of 4%, there was also a 60% growth in asset finance for IT equipment this year. With plant and machinery also reporting growth, asset finance is a popular choice for firms of all size thanks to its flexibility and accessibility. So, can asset finance boost your business and propel its growth?
Using Asset Finance
Put simply; asset finance means using the assets your business had, in order to borrow funds. The assets are used as security, for the peace of mind of the lender. As your business uses holdings as the security, lenders see minimal risk in your company being able to pay off the loan. You can read more about the uses for asset finance in Funding Bay’s blog post on; ‘What is asset finance?’.
How Can Asset Finance Boost Your Business?
- Budget planning – fixed payments over a set period means that firms can prepare and budget accordingly.
- Fast thinking – Lenders typically make quick decisions on asset finance which can speed up delivery, so you can pursue opportunities.
- Flexibility – With negotiable terms for payment, your business can enjoy a certain amount of flexibility while remaining in agreement with the contract.
- Manageable costs – Spreading large purchases into a more manageable size can be a smarter and more realistic business decision.
- No reliance – Asset finance enables businesses to secure items crucial to their operation without dependence on unsecured and secured loan acceptance.
Asset Finance – A Wise Investment?
Economic uncertainty can make the loan market very difficult to navigate. However, asset finance is one option that can still provide a sound business decision, regardless of the broader economic uncertainty.
In many ways, asset finance can save money. This is because you typically only pay for the asset during its usable life. You can begin using the equipment immediately to grow your business and generate returns, and usually will have no upfront premium to pay for the privilege.
It is no surprise that IT equipment is one of the fastest growing sectors for asset finance. Not only do many businesses require the latest technology in order to be competitive but with asset leasing, your business can invest in the equipment you need without the risk that it will quickly become obsolete. Rental leasing has inbuilt risk management, so you can always stay ahead and always remain competitive.
With asset finance, you have the ability to react to changes in the market quicker. Asset finance can ensure quick upgrades and smart business decisions that you can make without hesitation. As soon as you see an optimal strategy for your business, asset finance enables you to pounce and adjust your business environment with ease.
All businesses need to focus on a cash flow that will ensure they can act for all business opportunities. Using asset finance means your business can still have cash reserves available as you don’t have to pay in one lump sum. Better cash flow means greater chance of growth.
Is Asset Finance Right For You?
At Funding Bay, we can help you to determine whether asset finance or any other business funding products are right for your business. By answering just eight quick questions, the Funding Bay experts can assess your needs and find the right source of funding which makes the most commercial sense.