Weighing up your finance options when investing in new Business Assets
- Date: 25 March, 2021
We've weighed up a few popular options that businesses may consider when investing in new Assets. You could use existing cash, apply for a business loan, or look into Asset Finance.
To view our handy infographic in a full page click here.
Use your existing Capital
One major benefit of using your existing capital to pay for a new Asset is your all paid up with no commitments to make future payments. However, using up cash resource could mean increased dependency on overdrafts which could come with additional interest and annual facility fees. And what if that cash was needed for a rainy day?
Apply for a Bank Loan
Due to the number of Banks out there you can shop around for the loan terms that best suit you and compare rates from lender to lender to make the deal as sweet as possible. However, this can take up valuable time and you may not get approval.
Consider Asset Finance
- Finance anything from 1k upwards with flexible payment periods of up to 5 years.
- Opens additional lines of credit: asset finance compliments cash resource that you already have as well as other bank facilities such as overdrafts and loans.
- Include maintenance, delivery and installation costs in the agreement.
- Upgrade, make additions or settle the finance agreement at any point.
- Make seasonal payments. Where appropriate payments can be matched to your cash flow cycle.
- Most equipment asset finance is 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.
- The certainty of repayment: the vast majority of asset finance agreements are fixed in terms of interest rates. Why invest cash resources in a rapidly depreciating asset when you can pay for its use over its economic life? Using up cash resource could mean increased dependency on an overdraft along with additional interest and annual facility fees
What's more, Asset Finance can be very quick. At Reality Finance, we can get you same day approval to finance Assets up to a value of £75k*.
For more information or for a no obligation quote click here.
*subject to status and approval.