Office Equipment Asset Finance
Asset finance is a type of lending used by businesses to obtain the equipment they need to grow. You can use Asset Finance to purchase business assets such as Office Equipment that you need to purchase for your business to keep your staff working at peak performance. You can even release the equity in the Assets you already own using an Asset Refinance option.
If you are looking to acquire new equipment, paying for them in cash upfront could have a major impact on your cash flow and available working capital which is quite risky. Thats where Asset Finance comes in. The most common types of asset finance are leasing and hire purchase and both of these allow your business access to the equipment you need to grow your business without the huge upfront by speading the cost over time.
Types of Asset Finance
Hire purchase is a way to buy assets by paying in installments over time. With hire purchase, you legally own the item once all the installments have been paid. Rather than renting the asset, hire purchase is like making a purchase and paying in instalments. Unlike leasing, your business will own the asset and it will be a fixed asset on your companys balance sheet
Finance Lease or Lease Hire is perhaps the most popular Asset Finance option for businesses looking to gain use of a high value asset over a period of a couple of years. This option means that your business would essentially Rent the asset from a lender/lessor over a fixed period of time and at the end of this period you can return the equipment back to the lender and updgrade the equipment or renew the lease to continue using the same equipment. Using this method, the finance company buys the equipment and remains the owner at the end of the lease so your business does not own the assets. Businesses must consider the Hire Purchase option if they are likely to need the equipment for a longer term than just a few years as Leasing may become more expensive than opting to purchase the equipment.
Asset re-financing is a product that allows you to 'unlock' cash tied up in the existing assets owned by your business. The finance company will secure their debt against the physical assets owned by your business and if things go wrong where you can’t keep up with repayments, they can take the asset to recoup their losses. This provides a lowered risk for the lender in lending to your business and allows you to borrow more easily and perhaps even without a personal guarantee.