Asset finance enables companies to obtain funding for the purchase of assets they need to run & grow their businesses successfully - by way of hire purchase, lease purchase & leasing. With asset finance you can borrow from £10,000 up to £10,000,000.
Asset finance can be used to purchase:
Vehicles, Including:
· Light Commercial, HGV’S (Heavy Goods Vehicles)
· Vans, trailers and company cars
· Coaches, buses and minibuses
· Specialist industry vehicles including Horseboxes, Motor Homes & Caravans and many more
Plant & machinery Including:
· All forms of construction industry plant and machinery (yellow plant)
· Print machinery and machine tools
Specialist equipment Including:
· Manufacturing
· Engineering
· Construction
· Plant hire equipment
· Office & computer equipment
· Equestrian industry
· Care home/Nursing Home industry
· Caravan Parks
· Hotels & Leisure
Rather than suffering what could be a significant drain on your working capital through an upfront lump sum payment when you purchase the asset, you will ease your cash flow through regular payments over the agreed period of time of your asset finance arrangement. The Directors of Open 4 Business Finance Ltd have over 50 years experience within the banking industry and therefore have a clear understanding of client needs in different industries, matching needs with financial services available. This process can often lead to significant time savings and more importantly cost savings for the client.
Open 4 Business Finance Ltd has access to all the major UK primary and secondary lenders and as such we are able to negotiate the very best deals in the marketplace on your behalf, leaving you to concentrate on managing a successful business. Decisions in principle are often given within 24 hours of receipt of supporting information.
So contact us today on Freephone 0800 0778987 we are waiting for you call, alternatively you can apply using the contact form within the CONTACT US page on the web site.
BENEFITS OF ASSET FINANCE
- Assets and capital equipment are financed from revenue as you put them to work
- Asset finance rates can be as competitive or even better than bank funding rates
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Asset finance does not tie up working capital or stock funding
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You benefit from the full use of the asset without having to pay all upfront
- Fixed rates are available - making budgeting easier
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Depending on the situation you may benefit from tax advantages.
- Leasing can involve low initial outlay
TYPES OF ASSET FINANCE
Hire Purchase
Both Hire Purchase and Lease Purchase allows you to gain eventual ownership of the asset at the end of the repayment term.
Benefits:
- You gain ownership of the asset at the end of the agreement
- Fixed monthly repayments allows you to budget over the term of the agreement
- Simple documentation
- A means of spreading the cost over the useful working life of the asset
- You are treated as the owner of the asset for tax purposes and are able to claim capital allowances
- Monthly repayments do not attract VAT
- Hire Purchase charges can be offset against profits for taxation
- You can reclaim VAT on the capital cost of the asset
Finance Leasing
Finance Leasing allows you the full use of an asset but without ownership ever passing to your business.
Benefits:
- Rentals are deductible from income as a trading expense
- Flexible rental patterns and lease periods
- If you are registered for VAT then the VAT charged on rentals can be reclaimed
- Option to extend the lease into a secondary period
- Be offered the majority of sale proceeds when we sell the asset
The lease period will be set for the useful life of the asset and at the end of the term you will be given three options:-
1. Sell the goods to a third party and be offered the majority of the sale proceeds
2. Enter a secondary rental period and continue to use the asset
3. Return the asset to lease provider
Refinancing
A facility whereby equity in wholly or partly unencumbered assets can be released in order to give an immediate capital injection to your business. Alternatively, assets subject to agreements with other finance companies can be refinanced with many asset funders, leading to a reduction in monthly commitments by extending the period.
Benefits:
- Assists cash flow by injecting capital into the business
- Can reduce monthly payments
- You have continued use of the asset being refinanced
- The capital raised allows for the purchase of other business assets not normally considered suitable for standard hire purchase or leasing agreements
STOCK FINANCE
Stock finance is funding based on the stock you carry. If your business carries a lot of stock then the value is tied up in your warehouse. Stock Finance offers you a way to transfer some of that value into working capital. Typically a stock finance lender will advance you up to 60% of the value of your stock. As a finance option it is only available to large businesses with a turnover in excess of £5 million operating in commodities, manufacturing, wholesale or distribution.
The facility is secured against the stock involved. It is often offered alongside an invoice finance facility of some kind.
Benefits:
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Allows you to free up working capital currently tied up in stock.
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You only draw down the money you need and pay interest on that money.
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Can be organized relatively quickly
The Directors of Open 4 Business Finance Ltd have over 50 years experience within the banking industry and therefore have a clear understanding of client needs in different industries, matching needs with financial services available. This process can often lead to significant time savings and more importantly cost savings for the client.
Open 4 Business Finance Ltd has access to all the major UK primary and secondary lenders and as such we are able to negotiate the very best deals in the marketplace on your behalf, leaving you to concentrate on managing a successful business. Decisions in principle are often given within 24 hours of receipt of supporting information.
So contact us today on Freephone 0800 0778987 we are waiting for you call, alternatively you can apply using the contact form within the CONTACT US page on the web site.
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