Asset finance in its many forms plays an integral part in the histories and futures of companies both small and large. When assessing the viability of investment in to the kit that is key to your operational requirements and growth plans, the impact it will place on cash flow is a crucial consideration.

If you place stock in the phrase ‘cash is king’, then asset finance may well be the way to keep the crown on your head. Whether a start-up or a blue chip organisation, we have a range of options that can help you do just that.

The main forms of asset finance we arrange are:

A straightforward facility, designed to spread the expenditure over a manageable term, with outright ownership at the end. We can tailor deposits, terms, and repayments to suit your specific business requirements. Many businesses benefit from tax efficiencies, by claiming writing down allowances and offsetting interest payments against taxable profits.

Where ownership is not required, finance leasing works well for a broad range of business assets, including vehicles. Offering the obvious cash flow benefits of paying in instalments, and deposits that can be as low as one month’s repayment/rental, many businesses also benefit from spreading the VAT over the term of the agreement. The repayments/rentals can normally be offset against taxable profits.

A form of rental agreement which can make ‘off balance sheet’ finance possible. Suitable for a range of business assets, but often particularly effective for financing heavy commercial vehicles, the funder builds in a residual value, resulting in lower rentals. And as the funder retains ownership, at the end of the term you can discuss extending, or hand back the asset without the worry of depreciation and disposal of the asset. The rentals can normally be offset against taxable profit, and subject to your auditor’s approval, the asset may be treated as ‘off balance sheet’.

A simple way of releasing equity in unencumbered assets or assets nearing the end of their original finance arrangements. The result is a speedy cash flow boost to a customer’s working capital. The customer invoices the sale of the assets at current market value (or slightly less) to the new finance company, who then incepts a new finance agreement and the customer receives the sale proceeds less any residual finance that may have still been outstanding to the original funder. It can also be a useful way of restructuring existing finance agreements to result in a lower monthly repayment, whilst continuing to have the use of the assets.