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Asset Finance


Asset finance solutions have overcome the challenges of raising capital to purchase new assets or refinancing existing ones. Asset financing companies offer more direct, specialized funding to assist with the asset growth of small businesses whilst some do through the use of a bank overdraft to boost their business cash flow. Asset finance is the release of cash against the value of existing business assets. Others such as hire purchase provide a means to purchase new equipment without having to tie up the working capital.

Asset financing has some of its benefits over others such as allowing businesses to purchase machinery and equipment whilst protecting their cash flows. Asset finance avoids the need of selling at a second hand when upgrading the asset. Equipment can be purchased either overseas or domestically through it as well as this equipment can be leased for a short period of time if only it is required for a limited time. Asset refinances releases capital against the currently encumbered assets as well as finance and operating leases avoiding the issue relating to asset depreciation. These are just but a few of the benefits of asset finance.

Before settling for asset finance, it is quite important to identify with the right asset finance that suits you best. There are a range of options that are available therefore its vital to explore the benefits of each before purchasing new assets. Asset finance is the hire purchase. This allows your business to hire an asset from a leasing company over a fixed period of time but in return for regular payments. What happens is that the hire purchase company purchases it on your behalf and when the repayment period of the hire contract is over, your company then has full ownership of the asset.

Asset refinance is another one that provides vital cash to help your business to overcome cash flow problems as you sell equipment to an asset finance company who in turn leases it back to you for regular rental payments. Import leasing finances the purchase of an asset from overseas with the asset finance company also specializing in international business management. Finance lease and operating lease allow businesses to use an asset for a period of time. In return, you make regular payments. There is also the vendor finance which allows your business to purchase an asset from a seller over a specific period. After this, the vendor forwards a certain percentage of its value which is then paid back in regular installment. It is important to identify with the asset finance that you want and know its benefits before purchasing a new asset.

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