Expand your business with the right finance options
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Spread the cost of new business purchases
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If your business has fixed assets, such as vehicles, stock, property or even machinery, you may be able to get asset finance which could assist you in releasing some of the working capital in your business. This could then be used to make improvements to your business. Asset finance, also known as asset-based lending, is a helpful solution to help spread the cost of new business purchases, without tying up capital or taking out a bank loan.
Whether you are looking to expand your business, fund company vehicles or hoping to finance new equipment, asset finance could help. By applying for asset finance, you could take a strain off your business and ease cash flow. This type of commercial finance can also help you to release cash from the value in assets you already own or use your existing assets as security against a business loan. At Able Commercial Finance we are not tied to any one lender, which means that we can search through a range of financial lenders in order to find you the best asset finance solutions for your company.
How does asset finance work?
If you are looking to invest in new assets or release capital from existing assets we can support you in accessing a variety of different asset finance solutions. Why tie valuable cash up in assets that could be used to support the working capital of your business. With asset finance you are able to spread the cost of purchase over the course of the economic life of the asset. Typically, you are able to obtain funding from 12 months to 84 and can obtain finance from £5,000 to multi million transactions. Asset Finance can be tax efficient, flexible and can preserve your cash flow.
It is designed for any type of business, including SMEs, who wish to access an asset that has high value to support their business’ growth. Asset finance is suitable for eligible businesses including limited companies and partnerships, sole traders and public limited companies.
It can be used to refinance an existing asset (including any outstanding finance if necessary and viable), to release cash, to purchase new equipment or machinery new or as a mixture of the two. At Able Commercial Finance, we can help you to understand which option is best suited for your business needs. Any asset-based finance package can be put together to take into consideration the existing and varied assets of a company, whilst at the same time building an individual solution. This solution can be tailored to the precise requirements that the company might have, both in the immediate and the long term.
How can Able Commercial Finance help?
At Able, we take the time to understand your business and what type of commercial finance support it needs. We can help to match you with the most suitable lender to provide the right kind of finance solution. We are an independent broker service, meaning we can deliver imperial and fair advice to help you make the right decision for your business.
Assets that can be financed include
Vehicles including cars, vans, HGV’s and bus/coaches
Agricultural equipment
Construction equipment
Manufacturing and materials handling equipment
Transportation and haulage
Soft assets including computers, office equipment, telephone systems and software
Renewable energy equipment.
Types of Asset Finance Available
Is the most recognised form of asset finance and is used by individuals and business who wish to own the asset. A loan secured against the asset which is paid for by regular instalments. You have full use of the asset whilst paying the loan, and ownership transfers when fully paid for. Options include VAT deferment, seasonal payments, balloons, fixed and variable payments and minimal deposit deals.
This differs from Hire Purchase, you will have full use of the asset without ownership. The finance company owns the asset and is rented to you over an agreed period of time. VAT is payable on the rentals and upon completion of the agreement, you are able to retain the use of the asset by paying a secondary period rental, sell the asset to a third party or hand the asset back to the finance company. Leasing can be cost effective as the finance company claims the writing down allowances and passes them onto you in the form of lower rentals. Leasing can also be tax efficient as rentals can normally be offset against taxable profits.
This is a rental agreement which can be used to finance a broad spread of business assets. The funder builds in a residual value to reduce rentals which can help your cash flow. Operating lease can be tax efficient as rentals can normally be offset against taxable profits. At the end of the operating lease term, you do not have the responsibility of disposing of the asset you simply hand the asset back.
This is a finance facility which provides a simple way of releasing equity in unencumbered assets or assets nearing the end of their original finance agreements. Refinance can give a boost to the working capital requirements of your business and the funds can be used for a variety of different reason including business expansion, capital injection, paying tax or restructuring existing finance agreements to reduce monthly outgoings. Refinance agreements are structured using either Hire Purchase or Finance lease agreements.
