Tag: Asset Finance Brokers (page 2 of 2)

What are the benefits of using hire purchase?

25th August 2019 / admin / Comments Off

Need to purchase an asset, but don’t have the money to buy it upfront? Take out a hire purchase agreement to receive the asset now and pay for it in affordable instalments.

Hire purchase is a popular type of asset finance popularly used by businesses to buy vehicles, machinery and equipment.

Whilst you are still paying for the asset, the creditor is the legal owner, but once you’ve finished your payment plan it’s all yours.

Here are just a few of the benefits of buying an asset using a hire purchase agreement:

No need to pay a large sum of money upfront– Whilst you may be required to put down a small deposit, the cost will be nothing like paying for the asset upfront. This is particularly useful if it’s a large and unexpected cost, like a vehicle or key piece of machinery breaks down.

Flexible and affordable payments– Hire purchase allows you to spread the cost of the asset over a set period, so you’re paying off a small, affordable sum each month.

Protect your cashflow – Spreading the cost helps you to look after your business’ cashflow. Healthy cashflow is essential for developing and growing your business.

Own the item at the end of the payment plan – At the end of the payment plan, the asset is yours to keep!

Immediate use of the item – You can start using the asset immediately, meaning no expensive downtime whilst you save up the funds.

High quality asset– Many businesses find that they are able to afford vehicles and equipment of a much higher quality and specification through hire purchase than they would have if they were paying upfront.

Fixed interest rates– Hire purchase interest rates are fixed, meaning no uncertainty on costs, helping you to keep your cashflow stable.

No VAT on monthly repayments– VAT is paid upfront by you along with any deposit required. You will then re-claim the VAT in your regular payments.

For more information about our hire purchase agreements, or to discuss your requirements in more detail, give our team here at Richmond Asset Finance a call on 0113 288 3277.

Hard assets and soft assets explained

21st July 2019 / admin / Comments Off

Assets can be roughly divided into two categories, hard assets and soft assets, do you know the difference between each?

Asset finance helps businesses of all shapes and sizes to acquire the assets they require to grow and be prosperous.

The types of assets that your business requires to move forward will depend on a variety of factors including your industry, your business plan, and how established the business is.

Generally, assets are said to either be hard assets or soft assets.

Hard assets

Asset finance is most commonly used to acquire hard assets. Hard assets are usually physical, high value items that are essential to a business’ operation. This could include the following:

Commercial vehicles
Manufacturing equipment
Printing presses
Machinery
Construction vehicles
Plant equipment
Engineering equipment
Agricultural machinery

Financing hard assets provides finance companies with good security as the assets tend to retain value for many years, even at the end of their lease.

Soft assets

Soft assets may be more difficult to obtain with asset finance as they pose a bigger risk to the finance company. Soft assets are lower value items and have little or no value by the end of their lease. Examples of soft assets include:

Computer hardware and software
Office furniture
Security systems
Air conditioning systems
Electronic Point of Sale systems

If you require soft assets, then you may still be able to acquire them using asset finance by providing some additional security. This could include a deposit towards the asset, a director’s guarantee, or securing the asset with another existing asset to offset the risk. However not all asset finance companies will provide funding for soft assets.

Find out more about our asset finance solutionshere at Richmond Asset Finance by giving our team a call on 0113 288 3277 to discuss your requirements in more detail.

Asset finance market continues to show signs of growth

15th July 2019 / admin / Comments Off

After a record-breaking year for asset finance in 2018, the flourishing industry continues to show signs of growth for 2019.

In 2018 the asset finance market grew by 3%, hitting a new record level, with new business totalling over £33 billion.

As we entered 2019 the financial insecurity of Brexit was looming and it seemed uncertain whether this growth was sustainable, but statistics so far this year have shown continued growth.

Figures recently released by the Finance and Leasing Association (FLA) show that asset finance new business, for deals of up to £20m, grew by 6% in May compared to the same month last year. New finance for plant and machinery grew by 8%, as did commercial vehicle finance.

This follows the news that new business is up by 8% for the industry in the first five months of 2019.

It appears that more businesses than ever are turning to the asset finance industry this year for help growing their business.

In fact, according to the FLA, in the first quarter of 2019 the percentage of UK equipment investment being funded by asset finance stood at 38%, the highest it’s been for more than a decade.

It’s easy to see the appeal of asset finance to businesses. Acquiring assets and repayment is affordable, fast and uncomplicated when compared to applying for a traditional bank loan or overdraft.

Asset finance is currently the third most popular form of business finance after bank overdrafts and loans, helping thousands of businesses to obtain the assets that they require to develop and grow.

Here at Richmond Asset Finance, we provide a variety of flexible finance solutions including asset financeand refinance. For more information about any of our services, or to discuss your requirements in detail, give our team a call on 0113 288 3277.

Advantages of asset finance…

8th July 2019 / admin / Comments Off

…when compared to traditional bank lending

Businesses that cannot afford to pay large costs up-front can use asset finance as an affordable and flexible means to acquire the assets they require to drive growth.

So, why choose asset finance over a traditional bank loan?

Asset finance has several key advantages over a bank loan, let’s take a look at them in more detail.

Asset finance does not require a perfect credit history– Banks usually have strict lending requirements and will not always accept new businesses that lack credit history or have a poor credit rating. Unlike banks, asset finance lenders do not require a perfect credit history, each applicant will be considered on their own merits.

Applying for asset finance is generally quicker– Applying for a bank loan can be a lengthy and time-consuming process involving examining your financial history, performing credit checks and even creating a business proposal. Applying for asset finance is generally much quicker and more straightforward.

Cashflow benefits– Unlike bank loans, asset finance payments are usually fixed, so there’s no need to worry about rising interest rates. Payments can be spread out throughout the asset’s useable life, making paying for the asset affordable and reliable, and freeing up your working capital to improve cashflow.

Little or no security required– Asset finance is generally less risky than a bank loan or overdraft, so less security is required in order to attain it, making this type of finance particularly useful for start-up businesses. Usually the assets you are acquiring as part of the deal are security enough. If you cannot make payments at any point, then the finance company will simply take back the asset.

Asset finance companies often specialise– Asset finance companies often specialise in working with businesses within particular industries. This gives them a deeper understanding of how the businesses they work with operate and the challenges they face, allowing them to offer the most suitable solutions.

Here at Richmond Asset Finance we help businesses to gain the assets they need to succeed and flourish. Just some of the type of assets we will consider financing include commercial vehicles, engineering equipment, plastic and woodworking injection equipment, packaging and labelling machines and agricultural machinery and vehicles.

To discuss your requirements in more detail, give our team a call on 0113 288 3277.

Using rural lending to diversify…

29th April 2019 / admin / Comments Off

…into alternative livestock and crops

Rural lending opportunities could help farmers to boost their income by giving them the means to diversify into alternative livestock and crops.

Many farmers are feeling the pinch of increased competition, Brexit uncertainty, and the falling price of milk. In an uncertain economy and a changing industry, diversifying can bring in a valuable source of extra income.

According to Countryfile, over half of the UK’s farmers have now diversified in some form.

Some farmers are choosing to diversify into very different areas like leisure and tourism, which require significant investment to set up. Diversifying into alternative crops and livestock is less of a jump, uses existing skillsets, and is often more affordable.

Alternative livestock and crop ideas

Here are just a few popular alternative livestock and crop diversification ideas to inspire your new venture.

Goat or sheep milk.
Quail or duck eggs.
Wild boar.
Ostriches.
Angora rabbit wool.
Llama or alpaca wool.
Edible flowers or herbs.
Pharmaceutical crops.
Free-from crops.
Pumpkins.
Christmas trees.

Rural lending opportunities

For many farmers, diversification is becoming a necessity to stay afloat rather than an option. Whilst diversifying can be daunting, the results can be exciting and rewarding.

For most farmers, taking the plunge and deciding to diversify is aprofitable decision. Some farmers even find that their side-project grows into their main business. However, finding the funds to set it up in the first place can be challenging.

Rural lending opportunities provide farmers with the means to expand and grow their business. Whatever your circumstances, it is worth speaking with a specialist rural lending business like our team here at Richmond Asset Finance to find out more about how our short-term and long-term rural lending services can help you to grow your business and income.

To discuss your vision in more detail, receive free help and advice, or find out what rural finance options are available to you, give our team a call on 0113 288 3277.

Two Thirds Of Asset Finance Brokers Say Brexit…

5th May 2018 / admin / Comments Off

…Has Had An Impact On Investment

The fuss over the UK’s exit from the EU may have died down in the popular consciousness as people have largely resigned themselves to the inevitable, but the fallout in the business world is still playing itself out. This has led to many asset finance brokers blaming Brexit for decisions among business owners to delay investments.

This was at least the findings of a survey by United Trust Bank. Despite a long term boom in asset finance lending as businesses become more aware of its benefits compared to traditional forms of lending, 67% of asset finance brokers have said Brexit has had an impact on investment decisions.

The problem is said to be particularly evident in the vehicle, plant and machinery sectors indicating a fall in confidence in businesses that are likely to be seeking investment in these areas of their businesses.

Just over one third of asset finance brokers 33% felt that the UK’s exit from the EU wasn’t having any negative impact.
Much of what plays out in the coming months will depend on what deal the country makes with the EU and for businesses, whether or not their operations will be affected by Brexit if their market is largely or wholly domestic.