The asset finance market continues to grow as business owners wake up to the benefits this form of lending. So why should your business consider asset-based finance and what benefits can it offer over traditional forms of lending?
One of the major benefits of asset finance is that it not only provides finance for a business, it also helps fund the equipment needed to expand or improve productivity.
One of the major hurdles for owners of startups and small businesses is having enough finance to scale up their operations. Equipment is generally expensive and if this equipment is purchased it often takes vital funds away from other areas of the business.
Spreading the cost of this equipment using asset finance is business friendly because it allows assets to be used to generate income freeing up cash to be used in other areas of business development.
Asset finance is provided by specialist asset finance companies and the process is often fast and straightforward. While banks will be demanding in the amount of information, they need due to the risks involved with traditional lending, the risks with asset finance are lower reducing the time it takes to put the funds in place.
To summarise, asset finance companies offer an attractive alternative to traditional lending by using assets to free up and maintain cashflow allowing business owners to expand and improve their operations.