Asset finance means a lot to people or companies who are in the business of purchasing assets for running their business with success. Put in other words, asset finance enables in saving your working capital for other good uses by letting asset finance do the purchasing. Asset finance is especially useful for small and medium enterprises as for them it is a great lending source of working capital.
Through asset finance you can purchase a property by way of hire purchase, lease purchase and leasing. Usually it is for vehicles such as cars, light commercial and heavy goods vehicle, plant and machinery or equipments like manufacturing, engineering and construction that asset finance is availed. The amount one can borrow under asset finance ranges from £10000 to £10000000 depending on equity in collateral. Lender will offer asset finance against any property which has greater equity in it. Since huge finance of the lender is at stake, asset finance is essential a secure financing. The property to be purchased also can be the security of asset finance.
Asset finance comes mainly in two options of hire purchase and leasing. The higher purchase option allows you to take ownership of the new asset you purchase. You can choose between fixed rate and base rate hire purchase. On the other hand under leasing agreement, the company offering asset finance agrees to purchase the asset and gives it to the customer on lease for agreed period of time at an agreed monthly or quarterly rental.
It is very important to first search for a suitable asset finance company. The field of asset finance is vast and there are companies who may be offering asset finance for a specific property purchase with specific conditions. So you shall have to extensively search and read the terms-conditions of the finance providers first. You should be very sure of your requirements from asset finance. Then only you can locate a suitable asset financer for your business.