Why you should finance assets when the economy is volatile.

Why you should finance assets when the economy is volatile.
8th August 2023 Team CSF

Why you should finance assets when the economy is volatile.

The continued rhetoric around mortgages is potentially sending out the wrong message. Although we are finding Consumer underwriting very affordability focused there is still a strong flow of commercial funding in the system and appears to be a normal underwriting environment. If you need to raise capital for anything commercial we are still a fast and effective route to use. The loan structures are market competitive and could be a way of securing property or refitting a factory for example – we are here to discuss any thoughts you may have. For most small to medium sized companies, asset finance is quite often associated with the purchase of equipment used in that business for production or associated services.

In the likelihood that a change in markets might occur as per the current cost of living crisis, inflation and financial strain in may market sectors, the use of a scheduled payment options helps protect a business from any fluctuations or repercussions in the market.

This is especially concerning for business’s who have been potentially foreclosed for the greater part of their trading year, as many sectors have been unable to generate their usual income. However, there has also been a large element of these businesses who have discovered new and innovative ways to continue operating by exercising their entrepreneurial spirit. Therefore, financing an asset with flexible terms provides a safer option for those looking to acquire assets and fund the unexpected changes they are being forced to implement.

If you have a business that is recovering, expanding or just looking at innovative ways to change, asset finance could be a lifeline in the coming months.

Funding Options

Hire Purchase –  A facility available to purchase new or used equipment that will enable your business to recover or expand. To be used to spread the capital expenditure over a period up to five years with minimal initial outlay (in many cases the VAT element only) at competitive interest rates and terms.

Hire purchase with balloon payments – A variation of a regular Hire Purchase facility where an offset final payment can be factored in to reduce the monthly payments, used when an asset has a strong residual value.

Equity Release – Where one or multiple assets are currently owned and unencumbered with an identifiable value, the assets can be refinanced onto a Hire Purchase agreement releasing capital back to you to use as cashflow or business development. An easy and quick way to raise money in an established or new business.

Loan consolidation and restructure – For a business with multiple loan facilities in place from a variety of lenders, a review of the whole debt commitment to reduce the monthly outlay onto more favourable terms.

Why asset finance?

Asset finance is an efficient and effective way of spreading the financial strain of capital outlay over a pre-agreed period of time. It enables a business to advance its productivity with new equipment securing its current and future status and ensures that the regular financial channels of the business remain open and free for emergencies and unforeseen expenditure. It is a competitive and flexible way to capitalise a business.

The asset division of Classic and Sports Finance currently offer a variety of competitive and flexible options from a panel of established lenders with fast and efficient turnaround times. Our commercial experience will secure the best of breed from the financial markets with sound and accurate advice. For an exploratory conversation – call Rob Johnson 01869 351512 or e mail enquiries@classicandsportsfinance.com