Asset finance
Learn more about asset finance
Asset finance enables companies to obtain funding for the purchase of assets they need to run & grow their businesses successfully - by way of hire purchase, lease purchase & leasing. With asset finance you can borrow from £10,000 up to £10,000,000.
The most common kind of asset financing is to extend loans to purchase:
- Vehicles such as cars, light commercial & heavy goods vehicles including vans, trailers and company cars as well as coaches and buses
- Plant & machinery such as yellow plant, print machinery and machine tools
- Equipment such as manufacturing, engineering, construction and plant hire equipment or office & computer equipment
Rather than suffering what could be a significant drain on your working capital through an upfront lump sum payment when you purchase the asset, you will ease your cash flow through regular payments over the agreed period of time of your asset finance arrangement with Lloyds TSB Commercial Finance.
Benefits of asset finance include:
- Assets and capital equipment are financed from revenue as you put them to work
- Asset finance rates can be as competitive or even better than bank funding rates
- Asset finance does not tie up working capital or stock funding
- You benefit from the full use of the asset without having to pay all upfront
- Fixed rates are available - making budgeting easier
- Depending on the situation you may benefit from tax advantages.
- Leasing can involve low initial outlay
When to use asset finance?
There are basically two options - hire purchase & leasing.
Hire purchase enables you to eventually secure ownership of the new assets. The cost of an asset can be spread over its useful working life and paid for out of the revenue it earns. Payment patterns can be tailored to suit individual needs, generally involving a deposit followed by a series of monthly or quarterly installments. Customers can choose between Fixed Rate and Base Rate Hire Purchase.
A leasing agreement gives a company full use of an asset for an agreed period of time at an agreed monthly or quarterly rental. We purchase the required asset, claim any available capital allowances or writing down allowances and pass the full benefit on within the lease rentals. We have developed a number of leasing plans, each designed to meet the requirements of specific circumstances.
Unfortunately, we do not fund marine or aerospace equipment, land, property, natural resources (gold, oil, etc) and stock.
We can however provide funding against stock, property and land via other asset based lending facilities when linked with an invoice finance solution.
The exact mix of assets utilised will depend on your needs and the strength of security in the assets themselves - click here for more information about invoice discounting.
