Many businesses use asset finance to increase business growth, spread costs further, and allow fixed payments for simpler budgeting, to name a few. But do you know what Asset Finance really is?
There are three main types of Asset Finance – Hire Purchase, Leasing and Asset Refinance.
Hire Purchase allows your business to purchase the property, and spread the purchasing costs over its working life. Also, offers flexibility on the cost of deposit, regular monthly payments and final lump sum.
Finance Lease allows the finance provider to rent the equipment to the business for a fixed period, spread costs further, given full ownership to utilise, and is liable for the equipment (Must insure, pay maintenance costs). The business will never have the opportunity to purchase the equipment, not even at the end of its usable life.
Asset Refinance allows the business to use the property and simultaneously maximise on a cash injection to your business. Also, offers the possibility of acquiring another company, purchase another business partner, generate cash for workplace improvements, and simplify all of their existing repayments.
What works best for you will depend on your personal circumstances. Your local ASC director will be able to help you.