Asset Finance Information

Benefits of Leasing

Put simply, finance allows you to buy more than your cash flow allows. By reducing your initial capital outlay, your spending power is dramatically increased. 

Given the ability to spread costs over the useful life-cycle of an asset, equipment finance is used by the majority of FTSE 100 companies. Even cash rich companies choose to use finance, and conserve their cash.

  • Grow your business

    By using finance, you pay for the equipment as you use it, with it possibly generating the income to pay for itself.

  • Opens additional lines of credit

    Asset finance complements your existing cash resource as well as other bank facilities such as overdrafts and loans. This means you can fund the expansion of your business when you want to, as opposed to when you can afford to. Additional lines of credit will assist growth by opening relationships with funders keen to lend, without affecting current banking facilities and covenants in place.

  • Tax benefits

    Even FTSE companies use asset finance because the mutually agreed payments are offset against taxable profit, therefore reducing their corporation tax bill.

  • Secure funding

    Equipment asset finance is generally secured on the equipment being funded unlike overdrafts or loans which may need additional security such as charges over assets, book debts, property or guarantees.

  • Seasonal payments

    Where appropriate, payments can be matched to your cash-flow cycle.

  • Puts you in control

    Unlike overdrafts and loans which can be reduced or withdrawn by banks at any time, asset finance allows you to know where you stand throughout the mutually agreed term.

  • Certainty of repayment

    The vast majority of asset finance agreements are fixed in terms of interest rate. This means that not only do you have certainty as to what your monthly outgoings are, but with current interest rates you are locking in your borrowing when they are particularly low. In addition, you will not be charged an annual renewal fee as you would with a bank to renew your overdraft or loan facilities.

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