What is an asset?
A business asset is something valuable that has a cash value. An asset can be tangible (a piece of equipment or fleet) or intangible (a patent). As an expression of value, assets often generate future cash flows to the owner and they can be converted into cash if sold. Companies use their assets to derive ownership benefits in some way from using the asset or use them to generate revenue.
Because assets are integral to all businesses – whether their industry or sector – there are various kinds of specialist asset finance available to cover the cost of buying almost any kind of business asset.
How long is it for?
Again, each lender will offer their own terms for an asset finance deal, with 12 months to 60 months being common timeframes. At Hank Zarihs Associates, we take details about the kind of asset finance deal that you are hoping to secure, and then we work with our tried and trusted panel of lenders to secure the closest possible match.
Many of our lenders can offer flexible terms and other flexible features; features which businesses find highly attractive and which they might otherwise struggle to obtain if they went direct to a high street lender (rather than specialist business finance provider) via the open market.
Benefits of asset finance
There are various benefits to this common type of financial arrangement. These are some of the most attractive for businesses:
Spread the cost of new purchases
Business assets tend to be expensive big-ticket items. Asset finance allows you to spread the cost of these essential purchases, without impacting your cash flow, using up overdrafts, taking out bank loans or generally tying up your capital (remembering that access to capital is a pre-requisite for any successful business – especially during uncertain or turbulent periods in the economy.)
Keep working capital free
It can be a risky move to pay for a large capital expense upfront and tie up your business cash reserves. By using the right asset financing product, you can spread the cost of your assets, profile them against income, optimise your tax liabilities and safeguard your business.
Benefit from fixed repayments
Businesses benefit from the certainty that comes with fixed repayments; allowing them to plan ahead with ease and confidence. This offers greater control and stability when it comes to good financial management. Additionally, and unlike with an overdraft, funds are not repayable on demand.
When should you consider asset finance?
For most businesses, asset finance is the first choice any time that business needs to make a large capital asset purchase. The assets covered by this type of specialist finance are extremely broad and vary greatly by industry. As a general rule, if the asset is one that a business needs to carry out its operation in some way, it is likely to be covered by some form of asset finance.
What can you use asset finance for?
Asset financing can be used by any business in any industry, and the nature of the market means that there are lenders that will cover all types of arrangement. These are just three industries which use this type of financing very heavily, due to the capital intensive nature of the equipment they require to operate:
Agriculture has notoriously high costs associated with running an agribusiness, with farm equipment running into hundreds of thousands of pounds. Asset financing providers will consider offering finance against tractors, balers, combine harvesters, farm vehicles, biomass boilers, milking machines, forestry machinery, plant equipment and more.
Again, the costs of running a construction business can be high and the outlay required to invest in necessary plant, equipment, vehicles and machinery is usually extremely high. Examples of the assets that a finance company will lend against include crushes, excavators, loaders, trucks, cranes and earthmoving machines.
Examples of assets for the transport industry include buses, coaches, trucks, vans and cars. (See our specialist aviation finance page for finance deals for aircraft and helicopters).
The nature of assets that can be financed is incredibly diverse and specific by industry. Broad examples would include printing presses, hoppers, computer servers, gym equipment, solar panels, tools and camera equipment.
Unsure whether the business items that you need to invest in can be financed with asset finance? Contact the team at Hank Zarihs Associates and we will be delighted to help advise.
Speak to one of our specialists today
Hank Zarihs Associates is a highly experienced intermediary in the field of asset finance and other specialist types of business finance. We work with a tried and tested panel of trusted lenders who offer competitive deals to businesses, with flexible features.
Our service offers our business customers real value – speed, efficiency and administrative assistance. We prioritise long-term relationships which offer real value to our clients – many of whom choose to use us time and time again as a mark of the service that they receive.
We manage the entire application process for you, securing our clients excellent deals from lenders in the process. To receive a tailored illustration of the asset finance that is available to you, simply contact our team on 020 3889 4403, from Monday to Friday, 9 am to 9 pm.
We only need to take some basic information from you in order to go to our lending panel and receive a rapid series of finance offers. From this point, you simply choose the deal that you wish to proceed with and we handle the administration for you.
Your finance deal can typically be organised and concluded within 7 days, although some of our lenders are able to offer asset financing in a shorter timeframe. Please contact us in the first instance to tell us your needs, and we will be delighted to assist.