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Asset finance is one of the most commonly used financial tool for a company to purchase equipment for their business. This ranges from IT and software through to large plant and machinery. Why use asset finance? The simple answer is that it allows you to make larger capital investments and spread the cost to fit in with your cash flow. There are a few different options when using asset finance which are:

Finance Lease

This is where the lending company (lessor) purchases the asset and rents it to you (lessee) for an agreed interest rate and term. Finance leases can have balloon payments at the end of the term. At the end of the term the asset is sold to a third party to settle the outstanding balance.

Hire Purchase

Similar to the finance lease however the options at the end differ. At the end of the term you can take full ownership of the asset for a nominal fee and assuming you clear any outstanding finance.

Operating Lease

An operating lease is used where the lease term is short compared to the useful life of the asset or equipment.

There are different reasons for using particular types of funding. Speak to us about your requirements and we will guide you through the decision making.

What can be funded by asset finance? Almost anything, but here’s a list to give you an idea:

  • Vehicles
  • Computer Equipment
  • Office Furniture
  • Shelving, racking
  • Large Plant and Machinery
  • Software
  • Boats
  • Aeroplanes

The list goes on. Unsure if what you want to purchase fits!? Get in touch and we’ll talk you through all the options available to you.

Rates and Fees

Rates

Interest rates are determined by two things. The financial strength of your business and the residual value of the asset you wish to purchase. Rates start from 2% flat.

Fees

Usually the only fee associated with this type of finance is the document fee. Usually £299

Lender arrangement fee

On occasion, there can be a lender fee however this market place is very competitive and this can be negotiated.

Broker fees

Typically, there are no broker fees associated with this type of transaction as we are remunerated by the lender. Where the lender does not remunerate us, we will charge between 1.5 – 3% of the borrowed amount. We will always discuss this with you before engaging any lender.

How to Apply

As a whole of market broker, we understand how best to present your proposal to the lender and which lender would be most favourable for your circumstances.

Fact Find

We will always engage with you to fully understand you lending requirements. This will often involve understanding your wider business and commitments. Once we have an understanding of the proposal we will give you a steer on the likely appetite for your application.

What information do you need to provide?

As with all lending application we need to gather information to present to the lender. Here’s a general list of the information that will be required;

  1. Proof of identity, address (this can be done quickly and effectively via our mobile onboarding app)
  2. Financial accounts (if available)
  3. Specific details of the asset

We will also identify any other relevant information required when we discuss your requirements at the fact find stage.

What next?

Call us on 02921 303 888 to speak with one of our team. Not convenient now? Complete our contact form and we’ll get back to you when it is.