Asset Finance For Plant Machinery
Extending your plant machinery equipment is an important part of improving productivity and streamlining business operations. Regardless of what type of plant machinery you are buying, asset finance for plant machinery gives you an affordable way to get the equipment you need for your business.
Asset finance means that you aren’t required to pay large sums of money upfront, which in a lot of cases isn’t feasible. Our asset finance option means that you can get the equipment that you need without having to spend an excessive amount, at the same time as keeping your finances under control.
What Are The Benefits Of Plant Machinery Finance?
Opting for asset finance for plant machinery is a popular option amongst many businesses, both big and small. Typically, this is because of the possibility of keeping costs down and maintaining good cashflow.
Having plant machinery that works effectively and efficiently is absolutely vital for the companies who use it; which is why plant machinery finance ensures immediate access to the machinery that you require. Plant machinery finance also helps with budgeting, with fixed payments paid over a set amount of time making this easier and more straightforward.
Other Types Of Asset Finance
Many small business owners might assume that applying for an unsecured small business loan is their only option for funding a big-ticket purchase. What you might not realise is that there are lots of different types of asset finance available. Here are just a few:
– Equipment leasing: An equipment lease agreement is like renting your asset for a period of time. You won’t own the equipment at the end of the lease agreement, so you have the option of returning it to the lessor or buying it outright. If your plant machinery is likely to be outdated by the end of the lease, you could also choose to upgrade it to a newer version and simply continue your lease.
– Commercial Hire Purchase: A commercial hire purchase agreement lets you make regular payments for your business asset over an agreed period of time. However, your business owns the asset from the first day of the agreement, so it shows on the balance sheet right away.
– Unsecured business loan: An unsecured business loan lets you borrow the money you need based on the strength of your business’s existing cash flow. With this type of loan, the lender doesn’t require any of your business assets as collateral security. Just keep in mind that interest rates on unsecured business loans may often be higher than some other types of business loans, so it pays to consider your options before making a decision.
– Finance lease: A finance lease is also sometimes called a capital lease and is somewhat like a combination of hire purchase and lease agreement. The primary difference is that a finance lease begins the same way as a lease agreement, where you rent the asset initially. When the lease agreement expires, you can choose to sell the asset, return the asset to the lessor, or keep your lease and keep using the asset.
– Operating lease: An operating lease is a type of contract hire agreement where you choose to lease your equipment for a short period of time, or over a fraction of the item’s useful life. If your equipment needs to be upgraded regularly, a short-term operating lease may be a viable option for some business owners.
– Asset refinance: If your business is already making repayments on an existing loan, it may be possible to refinance to a more competitive interest rate. An asset refinance option could allow you to consolidate and roll various business debts into one convenient loan. A lower interest rate could mean saving money for the business and having just one monthly repayment to worry about could also streamline business cash flow.
With so many financing options available, it can often be challenging to decide on the best option for your business. The key is to speak to a business lending specialist about how each option could impact your tax obligations or your cash flow.
Finding The Right Asset Finance Options
Aside from having lots of different types of asset finance available, there are also a variety of different lenders to choose from. Many asset finance lenders specialise in their own specific areas, so it’s important to speak to a good business loan broker before making a decision.
A good business loan broker has access to more than 200 different lenders and finance products. Yet many business owners often don’t realise how many options they can choose from.
Major banks and high-street lenders are the options that usually come to mind for most business owners. However, many of the major banks have tightened lending policies and aren’t lending to businesses as readily as they once did.
Fortunately, there are also many challenger banks, independent banks, peer-to-peer lenders, and small specialist banks. With so many financial institutions available, it’s possible to access a broad range of finance options that could unlock your business’s potential.
No matter whether you’re buying new business equipment, consolidating debts, streamlining your business finances or unlocking cash for future capital works, the right type of asset finance could help you realise your goals. Take the time to discuss your options with a specialist business loan broker. You might be surprised by what asset finance choices are available for your business needs.