What is asset finance?

Asset finance can be an excellent way to get your business moving in terms of investing in growth – but do you know what it is and how it works, and more importantly – whether it would be a good fit for your business?

We explain how asset finance works and the kind of businesses and purchases it is most beneficial for.

NOTE: You might sometimes see asset finance referred to as fixed asset finance – this is the same thing.

What can asset finance help me with?

Businesses use asset finance to acquire equipment, usually an asset that is required to fuel growth.

It is a way of securing the asset without purchasing it outright and upfront.  The kind of things that asset finance is commonly used for include:

  • Agricultural Machinery
  • Construction Machinery
  • Manufacturing equipment
  • Logistics vehicles such as tractor units, trailers, vans etc.
  • Printing presses
  • Heavy plant

How does asset finance work?

The way asset finance, or fixed asset finance works is that the asset finance lender purchases the high-value equipment or machinery on your behalf.  You then make monthly payments for a fixed period of time, thus alleviating your business’s need to find large sums of capital upfront.

Asset finance is a way of spreading the cost of a big purchase – the finance is secured against the asset itself.

Who is asset financing for?

Asset financing is for you if you are looking to invest in a physical asset to fuel your business’s growth.  It is suitable for all types of business whether you are:

  • Limited Company
  • PLC
  • Limited Partnership
  • Sole Trader

I’ve been turned down for credit before, is asset finance for me?

Most asset finance brokers, and that certainly includes us here at Alpha Asset Finance, have a large and varied panel of lenders to provide a solution for most financial situations.

Don’t be afraid to ask the question.  Asset finance brokers can often find you a lender who is more willing to listen to your ‘story’ than perhaps your bank was.  It is better to go to one broker rather than shop around though – shopping around can raise a red flag.  Contact us now to explain your situation (don’t worry, we will have heard worse).

Can I use my existing assets to raise finance?

Very often, the answer is yes.  If you have equity in the assets, ‘refinancing’ can be an option if you are looking to generate capital or stimulate cash flow to fund growth (or even deal with unforeseen costs, and many companies have experienced plenty of those in the last 12 months).

How do I start if I want to find out more?

The best thing to do is simply contact Alpha Asset Finance, our reputation goes before us – we are known for our friendly, customer-driven approach and successful solutions for our clients.

Contact us today, even if you are just thinking about whether asset finance is for you, get in touch and we will explain in more detail about how asset finance might be able to help your business.

Telephone 01476 468318

Email theteam@alphaassetfinance.com


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