Asset finance allows companies of all types and sizes to spread the cost of the items they require to conduct their business and turn a profit. There are so many different businesses though, it can be confusing as to what actually counts as a business asset. Thankfully, it’s pretty simple as we explain below.
What Assets a Business Can Acquire Using Asset Finance
The assets themselves can be pretty much anything of value that the company uses to conduct their business. These can include large and expensive items such as vehicles like transit vans or forklift trucks. They can also include pallet racking, shelving and mezzanine flooring in a warehouse and all kinds of office and IT equipment.
Additionally, restaurants or other kinds of catering businesses may require special ovens or refrigerators to store food items, while an online retailer might require a set of computers and specialised packing equipment.
All of these items are types of business assets which can be acquired through asset finance. The asset finance options available might differ according to the asset’s depreciation value, but there will be various options for most business assets.
Refinancing with Secured Assets
One asset financing option that many businesses opt for is refinancing, where assets such as those mentioned above which are already owned by the business are used to secure asset finance. One example would be that of a haulage firm securing a refinancing deal against its fleet of vehicles. The refinance could then be used to expand the business.
Such an option provides access to capital that otherwise isn’t available for many companies.
Using Asset Finance to Acquire Assets
There are several options open to different types of business, enabling them to acquire the assets they need to turn a profit. Hire Purchase and Lease Finance are popular choices which allow a business to spread out payments over time. Once the payments are complete, the business will own the asset outright or will often be able to aquire via Prolease.
If you would like to learn more about how your company could use asset finance to acquire important business assets, contact Prolease Finance and our friendly personal team who can help you decide which option is better for your business.