Do you know what your commercial finance options are? There are so many different borrowing options and platforms but many UK firms are still unsure what options are actually available to them.
If you aren’t looking somewhere other than your bank for commercial finance options then you might not know when additional financial injection is right for your business.
There are a number of different borrowing options and many of them are available to businesses like yours. If you talked to a specialist commercial finance company and explained your circumstances they could explain and talk you through some of the reasons businesses don’t identify asset finance as a funding solution.
You don’t understand what asset finance is?
There are an extensive range of asset finance solutions available for you. They are used to describe a wide range of products that can provide funding by being secured against physical assets like plant, equipment, vehicles, technology and machinery.
Are you treading water?
Reading the newspapers and watching the news can be a confusing exercise, one which doesn’t always clarify an individual business’s unique circumstances. Your business might well be looking for a cash injection or looking to expand and Brexit reports or rumours of recession and downturn might be putting you off.
Put off by the high cost of loans?
Most businesses approach their bank as their first port of call when looking at business loans. But are often put off by lengthy application processes, high interest rates and higher payment terms than they feel comfortable with. Often they reject offers of loans because of this but don’t look elsewhere for alternatives. For instance, if they approach a finance broker they might be able to find a lender with better interest rates or a more suitable repayment plan.
However, one specific finance solution might well be able to help you out. Here are seven situations where commercial asset finance might be right for your business:
1. To Save Money
Do you want to save money? Try asset leasing or rental where you pay only for the value of the asset during its useable life. Not paying an upfront premium on new machinery or technology can mean generating a quicker return.
2. Retaining Financial Control
Commercial asset finance allows you to maintain control over your monthly expenditure so you can keep track of your costs.
3. Inbuilt Technological Risk Management
Some industries need pretty expensive machinery and asset leasing them means negating the risks of them becoming out of date; enabling you to upgrade much quicker.
4. When You Need To Move Quickly
Asset finance deals can be made quickly, meaning you can identify what suits your company best and move with minimal delay. Assets come with security attached so acceptance is usually easier.
5. For Tax Savings
Using commercial asset finance can help with your tax bill. All lease payments are categorised as expenses and fully deductible from your profits for corporation tax purposes.
6. You Need Working Capital
Any cash reserves are protected and maintained as the equipment isn’t paid in one lump sum leaving cash for growth or other opportunities.
7. You Are Risk Averse
Business can be volatile, if there is any chance of defaulting on your asset finance agreement you will only lose the asset and won’t be personally liable or your home at risk.
So if you want to release cash from your assets, buy or replace assets or start a new business, commercial asset finance can work for you.
We can understand that some business people won’t know everything about their commercial asset finance options, but you should at least know who you can talk to.
If you are looking for a better deal, or want to know more about our asset finance options, contact Funding Guru today or request a call back for a free, no-obligation chat with a member of our team!
