Asset financing allows you to secure funding on a valuable piece of equipment or vehicle owned by the company. While the loan is secured on an asset, you retain full use of it unless you default on your payments. Asset finance comes in the following main forms:
- Equipment Finance - Capital is raised by using a key piece of equipment as security for the loan. It is a common tool used as part of a business recovery programme as it can help improve cash flow and working capital.
- Stock Finance - This releases working capital from stock held by the company. This can be in the form of either finished goods or raw materials.
- Vehicle Finance - Finance is given to enable the purchase of a vehicle. Monthly repayments are then made to pay this loan back.