The 1 2 3 of Asset Finance – Where to start

If you’ve been looking into different financing options, you’ve probably come across several different ways to raise capital. But one very feasible solution for many businesses, whatever size, is asset finance.

Asset financing is an extremely valuable tool, which many businesses should look at, especially as they rebuild their businesses post-pandemic.

But where do you start?

You wake up one day and think, ‘I need a new _____’ to help with my business grow, but . . .

“I don’t have the money in the bank”

“My credit score isn’t brilliant”

“I’ve only been trading a few months”

“I need to reduce my hire costs” 

Any ring true? Asset Finance could still be an option! Let us explain the first few steps to get you started . . .

 

Step 1 – What type of funding do you need?

 Your first step would be deciding which type of financing would be best suited to your business needs at that time. There is a range of different ways we use asset financing. Some well-known asset finance types include

Asset Finance

Invoice Finance

Refinance 

You can visit our finance options page on our website to help you with this decision.

 

Step 2 – What assets do you want to fund?

 Generally, asset finance providers will consider a wide range of high-value items, both for purchasing or borrowing against. Two categories of assets can usually be financed: hard and soft assets. But which is for you?

Hard assets

As the name implies, these are physical assets and can include high-value items like machinery, plant, equipment, or vehicles etc.

Soft assets

These are things of a less durable nature and thus may have little to no commercial value by the time the finance agreement ends. This can include things like software packages, IT equipment, furniture, electronics, and any equipment that has a limited lifespan.

So, once you’ve decided what type of finance you need, what assets you want to fund, it’s time for step 3 . . .

 

Step 3 – Enquire and apply

If you are looking to acquire assets without breaking the bank, asset finance could be perfect for you.

So, what first?

We can help in much of the process, but having some prior information will help speed everything up. Once you know what asset you need – be it a tractor for the harvest season or a new printing press, for example. Whichever it is, it’s a good idea to have the value in mind.

Next . . . Do you need a deposit?

Not always. But we must make it clear that every application can differ. You would make the purchase and pay in monthly instalments for a set period of time with no significant sum of money upfront.

How we can help . . .

Alpha Asset Finance offers competitive finance solutions to suit your needs.

Having access to several lenders across the banking sector means that Alpha can truly build you a bespoke finance package to fits your specific business model.

Our finance products are as bespoke and as unique as the products you are looking to finance. Our reputation goes before us – we are known for our friendly, customer-driven approach and successful solutions for our clients.

Get in touch today



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