It’s a familiar scenario for small and medium-sized businesses: you need to invest in new (or pre-owned) machinery, vehicles or technology to make your business more efficient or grow, but you either don’t have the cash or don’t want to risk an expensive outlay.
Stuck between a rock and a hard place (which we reckon is the best track on the Stones’ Steel Wheels album, though you might argue that’s not saying much), you could apply for a bank loan, which may take an age to go through, or do nothing and see your competitors disappear off into the distance.
Step forward asset finance, which, though it may seem like it’s new on the scene is actually older than Jagger and Richards put together and, as you’re about to read, has a number of things going for it.
What is asset finance?
Put simply, it’s a type of lending that enables you to get business assets through leasing or hire purchase. And ‘assets’ means pretty much any equipment your business needs, from machinery to tools to commercial vehicles, and plenty in between. New or pre-owned; single items or multiple fleets/units. (And without blowing our own trumpets too much, we’re confident we’ll find you the most cost-effective deals.)
So what makes it worth considering?
On top of its flexibility, asset finance enables you – instead of paying hundreds or thousands of pounds up front that you either haven’t got, or that could be spent elsewhere – to pay a manageable, typically monthly, sum that lets you start using the equipment right away.
Wait a minute, does that mean…?
Yep, the revenue you earn from the new equipment can help pay for it. What’s not to like about that?
Is there any risk?
Not really… in fact, quite the opposite. For example, depending on the type of asset finance, you may have the option to buy the item at the end of the repayment period. But if the price of the asset has reduced in the meantime, you can choose not to, thereby not incurring the cost of this decrease.
But would it work for my type of business?
Almost certainly – there are leasing and hire purchase deals available on anything from engineering and manufacturing equipment through to beauty and hair salon gear. Every business has different specific needs, and there are tailor-made options for yours.
Is there anything else to know?
Actually, there is. You can also use asset finance to free up cash from the items you already own or have under a finance agreement with another lender, through asset refinancing. This allows you to get a loan to the value of the asset – and, again, the list of possibles is long – with repayments calculated in line with the income that’s generated by the item. It’s a great way to reduce your existing monthly commitments.
How long does it take to set up?
It’s quick. With Whittle Hall Finance usually you’ll get a same day decision.
Please contact us if you’d like to find out more, if anything doesn’t make sense, or even just if you want to tell us Mixed Emotions is actually a better tune.