Utilising Asset Finance to Grow Your Business

Are you a small business owner with the opportunity to grow? Or, perhaps to remain competitive in your field you need to stay up to date with the latest technology? If so, you may have worked out that extra, or updated, equipment or machinery is necessary. However, the costs of this upgrade could put a lot of potential pressure on your current cash flow. This is where asset finance can be advantageous.

What is asset finance?

Asset finance is available to help businesses purchase any machinery and equipment necessary to promote growth. As these assets usually require a large upfront outlay to purchase, small businesses can struggle to maintain cash flow while conducting upgrades. Asset finance is one of the more popular loan types for business vehicles; however, you can utilise this type of loan for a plethora of potential assets.

The typical loan term ranges from one to seven years; often with a fixed term and repayment for the duration. The figure you settle on for your monthly repayment can be adjusted to suit your business’s budget. If you need to repay a smaller monthly amount you may opt to add a balloon payment to the end of your term. A balloon payment is the addition of a larger, final, payment at the term’s conclusion.

Benefits of asset finance

• Quick turnaround: you may receive your asset finance approval in as little as a day.
• Simple process: with the help of a mortgage broker, the asset financing process can be managed for you.
• Reduced upfront costs: asset finance helps you avoid paying for your assets in cash.
• Fixed term: typically, you’ll receive a fixed term for the duration of your loan.
• Fixed repayment: the figure you repay monthly will remain the same for the duration.
• Secured with the asset: the asset you purchase becomes the security, meaning you won’t need to worry about gathering a deposit or using property as collateral .

Who is asset finance for?

Businesses of any size can access asset finance. Whether you are a contractor, self-employed, or a small business owner, there are several asset financing types to suit any need. Loan Market offers asset finance under the branches of a finance or novated lease, chattel mortgages, and commercial hire purchases.

A quick chat with Rob can provide you with further information to assist with your asset finance plans.