Asset Finance Solutions
Equipment or asset finance is a relatively common facility however can differ quite significantly to other forms of traditional banking products. There are also various forms of asset finance which can provide you with different features and benefits, particularly from a taxation perspective.
There are some general features with asset finance that are relatively standard across the board:
Security:Generally all forms of asset finance are secured over specific items of equipment only - normally the equipment that is being acquired with the facility. When you purchase a vehicle or piece of equipment under finance, it's generally correct to assume that the vehicle or equipment is the only physical security for the loan. This is quite different for most forms of commercial banking products, which may be secured over property, term deposits or by way of a floating charge over your entire business. A specific asset finance facility therefore can be a lot less restrictive on your personal and business assets.
Asset finance facilities are normally structured over terms from 2 to 5-years, and in some special cases up to 7 years. This means that the loan generally has a set period unlike various commercial banking facilities, such as a line of credit, which may continue for many years. Generally by having a set repayment period, it will assist in containing the overall interest cost for the life of the loan. This can differ for the likes of a Rental product where the term is defined by the period of the equipment's use.
In some cases the repayment structure of an asset finance facility may be setup to reflect your typical annual cash flow cycle i.e. high and low income times during the year. However in most cases the facilities are set with equal payments and possibly an end residual or final "balloon" payment which has the effect of lowering the monthly payments.
For more information on each type of finance click below:
Fully flexible finance options
Whether you need a Chattel Mortgage, Finance Lease, Rental or Commercial Hire Purchase - we can provide you with all forms of finance.
We can tailor a package to suit your needs when it comes to the type of finance that you require and the terms. We will clearly explain to you the features of each type of finance and what the general benefits are. Please remember to refer to your accountant for taxation advice.Apply now