Asset Finance for Plant, Machinery & Equipment Purchases

Asset Finance

Paying cash for an asset can be a significant drain on your working capital. However, using asset finance to lease the asset gives you access to the item without paying for it all at once.

All forms of leasing are basically rental agreements giving the you (the lessee) the right to use an asset owned by the lessor (the lease finance company) for a specific period of time in return for regular payments (rental payments).

In theory, it is possible to lease almost anything, from equipment valued at a few thousand pounds to assets worth millions. Leasing contracts are flexible and can be tailored to the specific needs of the client.

There are many types of leasing but, fundamentally, all fit one of two categories:

Direct Lease
The client identifies the asset (and negotiates the price) and arranges for the leasing company to buy it from the manufacturer (if new) or the previous owner (if used) to rent it to them.

Sale-and-leaseback (also called purchase leaseback)
The client sells an asset they already own to the leasing company for fair market value or book written down value (whichever is less) and then will lease it back.

Finance for Hard and/or Soft Assets

Hard Assets

All motor vehicles -Cars, Commercial Vehicles – from Vans, trucks, trailers, Lifestyle vehicles – Motorhomes, Caravans, Motorbikes, Plant & Machinery (Farming & Agricultural), Machine tools, Trains, Boats and Planes, Buses & coaches, Construction, Print & Packaging, Waste recycling, Cranes, Material handling and modular buildings (not an exhaustive list)

Soft Assets

IT, Software, Photocopiers, Furniture, Shop fittings, racking and partitioning, EPOS, franking machines, security, CCTV, catering, refrigeration, heating & air conditioning, vending machines, laundry, garage equipment, beauty, gym & leisure (not an exhaustive list)

Key Benefits

• Better Cash Flow
• No debt
• Maximize Financial Leverage
• Simplified cash flow management
• Tax advantage
• Flexible time frames
• Hedge against obsolescence

What do we need from you?

We will need to complete a Fact Find with you and as a minimum we will also require the following:

• Company Accounts (If Applicable)
• Management Accounts (If Applicable)
• Last 3 Months Bank Statements

Other services that might be of interest

Factoring & Invoice Finance

Invoice Finance works particularly well for expanding businesses. Increased turnover produces a larger debtor book which in turn produces more funding for working capital.

Business Loans

A business loan facility can complement other methods of raising working capital such as asset finance or factoring.

Commercial Mortgages

A commercial mortgage is similar to a residential mortgage, except the collateral is security over the Freehold or long Leasehold of a commercial building.