The global pandemic has severely impacted small businesses and many have been forced to look at ways, such as asset finance, to adapt by diversifying into alternative or news areas of the market.
This diversification often means new investment or equipment is needed. Whether it is a new IT system to cope with online demand, new vehicles to offer a delivery service, new products to ensure the business is COVID-19 safe or equipment to help a new way of working.
We have seen requests for asset finance to cover such scenarios increase since the start of the pandemic especially with manufacturing and IT sectors. As lockdown restrictions continue, we foresee the demand for asset finance growing even further.
Asset finance helps businesses access the resources they need without having the capital up front. This could be tailored to fund investment in any new company assets. Whether it is office equipment, machinery, medical equipment, computers, or vehicles. Packages can be tailored to suit the need for any type of asset including IT and software.
Asset finance covers new and used equipment so second-hand purchases can also be included.
Why choose asset finance?
Asset finance enables your business to expand and grow without paying up front costs. If you want to develop your business but lack capital, then asset finance could be the ideal option for you.
Using this finance method removes the need to use a lump sum to fund a purchase, freeing up cash-flow and spreading the cost of the purchase over an agreed period.
Business Finance – V4B offers free, impartial advice to businesses considering asset finance and our account managers are experienced in a wide-range of industries each able to offer extremely competitive rates.
If you are looking to expand your business with new assets or would like to replace existing ones, we can help.
Types of asset finance
There are different types of asset finance depending on the type of asset required and your individual business need.
Finance Lease – Hire or rent the asset paying a fixed monthly amount. At the end of the lease there are various options. You can purchase the asset or swap for an alternative.
Hire Purchase (HP) – Purchase the asset and re-pay the amount with fixed monthly instalments for an agreed time frame. There are various options at the end of the contract.
Business Loan – A loan is used to acquire the asset. Fixed monthly payments over an agreed time, usually three to 12 months.
Vehicle Leasing – Various lease options including Personal Contract Hire (PCH), Personal Contract Purchase (PCP) or HP used to acquire vehicles.
Refinance – Refinance any current assets over £25,000. This includes hard assets such as plant machinery, manufacturing plant and vehicles. This option is a good way to release cash back into the business.
Benefits of using asset finance
- Improve cash flow
- Additional credit lines
- Replace inefficient/dated equipment
- Competitive rates
- Tailored package to suit individual businesses
- Receive finance in as little as 48 hours
For more information on asset finance contact V4B Business Finance:
Telephone: 01978 668 939
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Business Finance is an accredited provider of the Coronavirus Business Interruption Scheme (CBILS). Click HERE for more information.