Every business needs equipment.
It might be manufacturing, packaging or printing machinery ~ big dirty (or not) machines on your assembly line or warehouse, it might be vehicles for deliveries, account managers or directors, it might be the IT suite, software or licences, it might even be the air conditioning and extractor units.
With the right kind of asset finance you can spread the payments over time, get the best tax benefits for your business and ensure that things are replaced when required.
Leasing equipment and vehicles is extremely common across the business world. There are various forms of lease which suit different equipment and circumstances.
The finance lease is used where you, the customer will take the asset for most or all of it’s useful life, take care of maintenance and then, at the end of the lease period either; Continue to lease on a secondary lease period, potentially with lower lease payments, sell the vehicle or equipment and keep a percentage of the sale value or hand the asset back to the lessor (finance company).
In a hire purchase agreement you, the customer pays a deposit against the asset or vehicle followed by monthly instalments for an agreed term, generally between two and five years.
A hire purchase agreement allows payments to be spread on the purchase of an expensive asset without the use of other security (a house or business premises for example). The lender will secure the loan against the asset so, if the loan repayments go into arrears the vehicle or equipment could be repossessed.
In car finance many customers are now looking to contract hire or PCP (Personal Contract Purchase) agreements rather than hire purchase, in the situation where a customer wants to have a new car often, the repayments being lower with a PCP.
Refinancing an asset or vehicle is a great option when your business needs a cash injection.
Acorn finance have a broad panel of funders offering finance against everything from working assets within the business to classic cars or the chairman’s yacht!
With no limits to the level of funding available, we just need to understand the value of the asset and put together a plan which is affordable to your business.
A hard asset is a physical item of equipment or a vehicle which has a definable value (for instance trucks, trailers, plant or printing equipment.
The most favourable assets in this class are easily transportable and have a ready resale market, this way once the primary user has replaced the item they, or the finance company are able to sell the used asset on the secondary market thus keeping the primary lease costs lower for the customer.
Hard assets can also form parts of buildings – lifts, air-conditioning or extraction equipment is all classed as hard asset and is readily fundable for most businesses.
There are many assets which are not tangible in this way but can still be financed or capital raised against them, office or shop fit outs, gym and health clubs, IT cabling and infrastructure or communications fit outs. Much of the equipment would not be resaleable but it’s still possible to fund against them assuming strong financial performance of the business making the purchase.
Going further it’s possible to raise funds against soft assets which are not purchased;
We call it F.U.N.D.E.D. It’s a 6 step process, which is unique to Acorn.finance.
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