Asset finance enables companies to obtain funding for the purchase of assets they need to run & grow their businesses successfully - by way of hire purchase, lease purchase & leasing.
The most common kind of asset financing is to extend loans to purchase:

• Vehicles such as cars, light commercial & heavy goods vehicles including vans, trailers and company cars as well as coaches and buses
• Plant & machinery such as yellow plant, print machinery and machine tools
• Equipment such as manufacturing, engineering, construction and plant hire equipment or office & computer equipment

Rather than suffering what could be a significant drain on your working capital through an upfront lump sum payment when you purchase the asset, you will ease your cash flow through regular payments over the agreed period of time of your asset finance arrangement with the lender best suited to the product your company requires funding.

Benefits of asset finance include:

• Assets and capital equipment are financed from revenue as you put them to work
• Asset finance does not tie up working capital or stock funding
• You benefit from the full use of the asset without having to pay all upfront
• Fixed rates are available - making budgeting easier
• Depending on the situation you may benefit from tax advantages.
• Leasing can involve low initial outlay

When to use asset finance?

There are basically two options - hire purchase & leasing.
 Hire purchase enables you to eventually secure ownership of the new assets. The cost of an asset can be spread over its useful working life and paid for out of the revenue it earns. Payment patterns can be tailored to suit individual needs, generally involving a deposit followed by a series of monthly or quarterly installments. Customers can choose between Fixed Rate and Base Rate Hire Purchase.
A leasing agreement gives a company full use of an asset for an agreed period of time at an agreed monthly or quarterly rental. The lender will purchase the required asset, claim any available capital allowances or writing down allowances and pass the full benefit on within the lease rentals. There are many finance packages to suit sector profiles.

Asset Re-Finance
 

Your business may have Plant & Machinery on the balance sheet, an asset that deprecates year on year.  CBF will ask for an asset register, breaking down the products, definition of the assets, make model, year registered, with this information talk to selected lenders that will consider “re-financing” your fixed asset.
As an example, £100k of P&M on the balance sheet, the asset registrar outlines a market value of £50k, the lender may offer 70% loan to value of the equipment, repayable over a 3yr Hire Purchase agreement.
Enquire about Asset Finance – We will not request full details until we have contacted you with the best UK quote for Asset Finance, so please give us a name and contact telephone number and we will have one of our Asset Finance Specialists contact you in confidence.