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Intro to Asset Finance Loans
When a business is focused on growing, it needs to invest money into its assets to ensure high and successful turnover. The best way to ensure high business productivity is by having the most creative, most cutting-edge assets for your business. The business may not have all the money they need to hand, so an asset finance loan is the best route to go down. An asset finance loan from a tailored asset finance company allows you to keep up-to-date with the relevant equipment without losing the money within your business.
Asset finance loans can be beneficial for obtaining the assets in the first place and upgrading them. However, businesses can be afraid to upgrade assets for fear of substantial initial costs and the risks of a disruptive installation process.
"Take the next step to get your asset finance loan."
Types of Assets
A soft asset is something you can't physically touch. For example, new software for computers, a new CRM system to organise leads, new skills for your business Alexa. Each of these can be considered soft assets.
"Asset finance loans can be taken out for both soft and hard assets."
A hard asset is anything you can physically touch. Examples of the hard assets Love Finance provides asset finance loans for are machinery, computers, vehicles, tools, livestock.
Why Get an Asset Finance loan?
Access To The Newest Equipment
The most apparent advantage of asset finance loans is that businesses can access the equipment they may not have been able to afford had they not chosen to use finance. Accessing this equipment will give your business a leg up that your competitors might not have; you can offer a service that's way above what you’d expect from a small business. New equipment gives you leverage. Another essential benefit to consider is the increased efficiency and productivity that a brand new asset can provide you; each pound spent on new equipment is a pound better spent than on an investment that's three years its senior.
"Use an asset finance loan to stay up-to-date with recent technology."
Banks are still feeling the impact of the economic collapse of 2008, which has meant the reluctance to lend has increased; it only takes one minor flaw in a business's history for a bank to refuse an asset finance loan. Approaching an asset finance business such as Love Finance allows for more flexibility as lending criteria are slightly leaner, mainly because each company is judged on its own merits instead of a strict one-size-fits-all checklist.
"Leasing through an asset finance loan provides your business with options."
Improved Cash Flow
Another benefit of asset finance is that it improves your cash flow, as there is no enormous initial cost for you to worry about. Spreading a high price over 2-5 years allows businesses to breathe a sigh of relief knowing they afford affordable monthly payments whilst having the best equipment for their business.
"Improve the cashflow within your business with an asset finance loan."
Why Use A Finance Company For Your Asset Finance
As a rule, banks don't have a strict set of industries that they lend to. Therefore their lack of specialised knowledge may lead to companies taking out finance packages that don't suit them. Working with an asset finance company offers more excellent specialist knowledge as most asset finance companies operate within a set amount of industries - for instance, at Love Finance, we specialise in garage, fintech and software finance. By being niche, asset companies can go deep into the weeds of finance in a particular industry. Comparing this to alternative lending solutions such as P2P and crowdfunding, where the funders barely understand the business they are funding or the industry, it makes sense to use asset finance firms.
"Use Love Finance for your asset finance loan as we know how to help you hit your targets."
When To Upgrade Your Assets
Regardless of your asset setup, it will need to be upgraded. Otherwise, you’re sitting on an outdated asset and not making the amount of money it could be making. The effect of an unproductive investment doesn’t stop there; it can spread to other parts of your business, halting your production line by affecting a particular bit or section of a process or an outdated kit demotivating your staff.
The link between productivity and asset upgrade isn’t just hyperbole… 31% of manufacturers in the State of the Manufacturing Nation Report 2016 said that investment in new equipment had a positive impact on productivity. Productivity also matters if you’re a business that's had a period of expansion and is looking to diversify into new areas; if you can't access high-quality assets that can get you into new markets - it's the difference between success and failure.
"Use asset finance loans to upgrade your equipment and keep your business moving."
To keep your business thriving, assets must be kept up to date in line with your competitors. An asset finance loan will aid this as you don't have to worry as much about the business's outgoings. If you're interested in financing your assets, contact us or click here to apply.