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Service Central can get you great deals on asset financing, with interest rates as low as 2.38%
Asset financing is another quick way to release money into your business to address problems with cash flow or buy an asset for your business. Maybe that new machine you’ve seen in a trade magazine will make all the difference to your output, or perhaps a larger van would make deliveries more economical. Asset finance can provide what you need now, rather than your business waiting until enough money has been saved to make the purchase.
Don’t be held back by not having the machinery, vehicles or raw materials you need to take your business to the next level, Service Central can deliver what you need through a structured asset finance arrangement with one of our specialist providers.
Asset financing and asset-based lending
Service Central can help you to decide whether asset financing or asset-based lending is the best solution for you; they differ slightly.
With asset based lending, you are borrowing money to buy an asset such as a piece of machinery or a vehicle. In granting a loan, the lender will look at what assets you have in your business, including accounts receivable. If you default, it will be the asset you have used the loan to purchase that will be subject to repossession and not the assets the loan was based on.
Asset financing differs from asset-based lending because instead of seeking finance to purchase an asset, what your business needs is a short-term loan to pay wages, increase cash flow or buy materials.
Asset finance is available as a secured or an unsecured loan. A secured loan is based on the assets already in the business, rather than on the creditworthiness of the borrower. This is why small companies, and larger one who have had problems getting business loans through more traditional channels, favour asset financing.
Unsecured loans under asset finance will carry a higher interest rate than a secured loan because of the greater risk to the lender.
Whether a loan is secured, should defaults occur, lenders can always claim against the business.
Other types of asset-based financing
Hire purchase is a popular form of asset-based financing. This can work like hire purchase in your personal life. You make an initial payment, followed by a regular monthly payment for a specified term. During that time, the hire purchase company owns the asset. At the end of the term, depending on what you agreed at the outset, ownership of the asset could transfer to your business when a final and probably sizable payment is made.
With finance leasing, the leasing company owns the asset and is responsible for its upkeep. Leasing a vehicle or plant can be a good way for your business to get ahead because it doesn’t require a large capital outlay. At the end of the lease period, it may be possible for you to purchase the asset at a price that takes account of the payment made during the lease period.
For more information on asset financing give us a call here or send us a message with the form below. We will listen to your requirements and set out options likely to suit your business and the position it is in.
