Asset finance is an umbrella term for the purchase of or refinancing of capital equipment within a business. As one of the fastest growing finance options on the market, asset finance can spread the cost of purchasing equipment or assets over an agreed period of time.
What types of asset finance can I business receive?
There are several types of asset finance. Whether you’re looking to purchase the capital equipment afterwards (finance lease or hire purchase), or just looking to borrow an asset for an agreed period of time (operating lease), asset finance can be ideal for SMEs looking to invest and grow their businesses.
Who is responsible for the assets or capital equipment?
Be sure that the maintenance and responsibilities of ownership are agreed beforehand; some terms give the business legal responsibility over maintenance, and for other contracts, the financier takes responsibility of the capital equipment.
Asset backed lending or sale and leaseback are forms of business funding which involve selling back assets that your company owns to a financier, as a way of injecting capital into your business whilst leasing it back over an agreed period of time.