Business Asset Finance – Flexible Loans

Business Asset Finance – Flexible Loans
19th January 2021 Ed Barton-Hilton
Business asset finance, flexible loans.

Business Asset Finance – Flexible Loans

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.

From the perspective of a business owner, spreading the cost of any capital outlay while the asset earns its keep is essential assisting in a healthy cash flow through the company.

Additionally, this use of a scheduled payment option helps protect a business from any fluctuations or repercussions in the market.  In the likelihood that a change in markets might occur- as per the current Covid-19 pandemic which has bought economic duress and worry alongside a potential risk in inflation and financial strain to many market sectors.

This is especially concerning for business’s who have been foreclosed for the greater part of their trading year, as many sectors have been unable to generate income due to their forced closure. 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.

So, aside from relying on the Government supported loan assistance (albeit supportive and attractive) you could return to the original channels of your high street bank for help which in our experience has been slow, costly, and unreliable. These banks have been scrutinised for excluding market sectors (hospitality for example) from any help at a time when they are needed most.

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 year ahead.

What could be available?

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. It 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