Asset Business Finance For UK Business

So you need a new car?
Asset finance enables you to have a financial package that is based upon releasing money on tangible goods within the business. These items are then your security. These items monetary value are then used to purchase more goods in exchange for a security interest in those assets. The most common kind of asset financing is to extend loans to purchase company cars, vans, machinery and equipment. By doing this it enables a quick cash flow to aid the business to grow and expand with stability. It can also level any debt or help to pay balloon payments on other loans, or reduce regular payments on any other leasing agreements.

The majority of items within a business can be refinanced
The majority of items within a business can be refinanced, from IT to machinery and the cost is spread over a period up to the useful life of the asset. Assets that can typically be funded in this fashion are generally also readily available within the resale market. The other benefits of asset finance include that it is relatively straightforward facility to arrange, the cost of the assets can be linked to the income stream it generates over time and again, that if taken, the rental profile is agreed at inception allowing simple cash flow management and that it is a stand-alone facility that leaves other lines of credit intact for working capital. Unlike an overdraft, asset finance is generally non-cancelable providing the agreement is maintained correctly

There are two dominant forms of asset finance
There are two dominant forms of asset finance, lease rental and hire purchase. The differences are straight forward, with Hire Purchase you are able to own the asset, whereas with the lease option you are paying the rent for use. Naturally if a piece of equipment is technologically changing all the time, it is more sensible to lease that product rather than to own it, purely because it may be obsolete before you know it. Hire Purchase is therefore more beneficial for "hard assets" such as plant and machinery equipment. But do be aware that this may not always be the rule, comparing the numerical differences is always advisable. Along with to the two options of asset finance are also two options of distribution. These being direct and vendor. Direct asset finance is when finance is arranged independently of the asset supplier, such as from a bank, or a specialist financiers or brokers. Vendor finance is offered as an alternative, to a "cash sale", by the supplier. Vendor finance is usually in the form of deferred loans from, or shares subscribed by, the vendor. The vendor usually takes shares alongside the management in the new entity. This category of finance is generally used where the vendor's expectation of the value of the business is higher than that of management and the institutions backing

Asset finance is a form of debt security
So in summary, asset finance is a form of debt security, based upon technical or hard assets. They are then pooled to enable further investments or expansion, with a reduced risk. So there are a few excellent reasons to look into this form of financing. Some being if a company that wishes to expand by purchasing equipment or property may wish to use asset financing to obtain the total amount quickly, without having to dip into the operating capital. Possibly if in the event that ceasing a relationship with someone becomes a necessity, this way of financing can quickly supply the cash to fund an exit package without disturbing the company's cash flow. Or purely in some cases, an asset financing type of loan may carry a smaller rate of interest than other existing business loans. Under those circumstances, paying off the loans with a higher interest rate and going with asset financing is certainly in the best interests of the company.

And finally
And finally, the advantage of asset financing is that the transaction is quick in completion. Essentially, the lender simply has to qualify the value of the asset or assets that will be used for security and then confirm that the assets are the property of the borrower. Once these two points are confirmed to the satisfaction of the lender, the financing can be executed immediately. In addition, asset financing tends to be compiled without the structure of the normal business loan, meaning that the agreement can be tailored to suit both parties. It also adds means the company is able to create a line of credit using resources that are ready for immediate sale, which will certainly mean that the financing repayment can be accomplished according to the terms of the agreement. When it comes to handling an unexpected situation or opportunity, asset financing can be an excellent solution.

Consider Your Circumstances: As with everything there are more options to hand, so you must consider your circumstances, affordability and practicality of financing your vehicle. If you are still in a quandary, why not read our other finance related articles for tips on the finance industry for further information, for here at HSL Vehicle Finance we cover car loans for prestige cars, asset finance, motorcycle and much more so why not let us give you a great deal on your next vehicle loan. To view what we can offer you, visit http://www.hslfinance.co.uk/pages/hire_purchase.lasso

Apply Online
HSL use a range of lenders to help secure the finance you need. When we get you accepted, we'll liaise directly with the dealer and arrange for you to visit them to sign the documentation. Within a few days we'll be able to pay the dealer and you will be able to drive away in your new car. CLICK HERE TO APPLY ONLINE

To qualify for our help if you have been Refused Car Finance elsewhere you will need to be:

• at least 18 years old
• Have Permanent Employed or be Self Employed
• A full UK resident with your main residency being in Britain

You will also need to have the following:

• A full UK drivers license
• Proof of income
• Proof of address

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