They might be tech, tools or just tables and chairs, but every business needs assets. Asset finance helps owners acquire what they need without having the cash upfront.
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If you run a small business, you'll likely own – or will soon need to own – physical assets. Whether that's office equipment, heavy machinery or vehicles, these items can be essential for your business growth. And when it comes to purchasing them, asset finance can help.
So, what’s asset finance? Asset financing is the process of a company getting access to business assets without paying for them upfront. It's basically a loan used specifically to buy or lease the products you'll use in the running of your business. You can also take out a loan against assets you already own.
Typically, an asset finance loan is secured against a company's existing assets, meaning that the lender could repossess them if the company becomes unable to pay back any money owed.
Business owners often use asset financing to purchase or lease high-value items. Lenders may want to see that the item in question meets the DIMS criteria: is it durable, identifiable, moveable or saleable? They’ll also want to know whether the assets are hard or soft.
They might be tech, tools or just tables and chairs, but every business needs assets. Asset finance helps owners acquire what they need without having the cash upfront.
