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Funding your potential
Having access to the right equipment and machinery to deliver quality products and services to customers is vital to businesses. Yet purchasing them outright can be difficult when you have to rely on your existing cash flow. We can help you unlock the freedom you need to grow your business.
Why consider using asset finance?
Many business owners can see the potential for expansion but just don’t have the funds readily available to make the investments that they need to grow.
Businesses of all sizes can take advantage of the many, wide-ranging benefits of asset finance:
- It spreads the cost of items rather than having to make a large lump sum payment.
- This makes it easier to budget for the costs in the long term and allows you to leave important cash balances within the business.
- It creates an additional line of credit that is separate from your bank.
- It’s a great way of maximising tax benefits.
Which asset finance solution is right for me?
Asset Finance is available in different forms such as hire purchase or leasing. Fundamentally each just offers a different structure with lower or higher deposits, options to purchase at the end of the agreement or ownership from the start. Our approach is to understand the business need and find the structure that works best. If you have deposit cash available it may make hire purchase more attractive, while leasing can offer lower payments. Tax benefits can be a factor too, hence we like to talk through before committing to an option.
Asset refinance
Asset refinance is a great way of making your existing assets work harder for you. There are two categories of asset refinance. Both allow you to unlock cash from items your business already owns - such as commercial property, land, equipment or vehicles - providing a welcome injection of working capital into your business when you need it most.
The first option allows you to use these assets to secure a loan. Once you have repaid the principal, fees and interest, the asset returns to you.
Asset based lending
The second category of asset refinance is asset-based lending, where you sell a hard asset to a specialist finance company for an agreed lump sum and then lease it back from them. This allows you to free up a large sum of cash, pay it back in small increments over a long period of time and also use the asset during the repayment period.
At the end of the repayment period, although the loan is cleared, the finance company now owns your asset so you can decide whether to continue to rent it, buy it back for an agreed sum or, if you no longer need it, walk away.
Finance lease
A finance lease is an agreement where a leasing firm buys a business asset on behalf of your company and then rents it out to you. You make the monthly payments until you cover the cost of the equipment, plus interest. You can then choose to extend the rental period, return the equipment or sell the asset to a third party on behalf of the leasing firm.
While you never own the asset, you are responsible for insurance and maintenance costs during the rental period.
Operating leases allow you to rent an item over a short or medium term, with rentals fixed at the outset to help you manage your cash flow. Ideal for specialist equipment or machinery that the business has no interest in buying permanently, this tends to be an affordable option as you only pay for the calculated value of the item over the limited lease time that is agreed.
Technology leases can help you reduce the cost of any IT or tech equipment your business might need. They also mean you can safely dispose of your tech at the end of the agreement.
Frequently asked questions
Which businesses can use asset finance?
We work for a wide range of businesses in multiple sectors. Whether you’re in manufacturing, sales, farming, high tech, road haulage or in an office-based industry, it’s likely that we can help. There are very few limits as to who can use our services, as long as you are a business owner and need to arrange finance of £25,001 or more, or, if you are a limited company, our minimum lend is just £3,000.
What type of assets can be funded through this service?
We help businesses fund all sorts of assets, from agricultural machinery to plant, aircraft and vehicles to construction equipment, HGVs to IT and office equipment, but this list is not exhaustive.
What type of assets will you lend against?
Almost everything that a business owns can be considered as an asset, even items you wouldn’t necessarily think have a value. If you need funds to refurbish a pub, for example, even the carpets can be used as security.
How much can I borrow?
We can typically arrange finance for any amount from £3,000 up to around £5 million.
How long are asset finance agreements?
This can vary hugely. Typically, the length of any asset finance agreement, especially one which involves the purchase of a piece of equipment, will be governed by the operational lifetime of the asset.
How do I apply?
If you are interested in finding out more, please just drop us an email at hello@joefizz.co.uk or call on 07789 992233. We’ll arrange a suitable time to meet and chat through the challenges your business is facing and suggest some solutions which might help.
