As a business owner that requires and relies on the use of IT equipment, it can sometimes be a struggle to finance the new technology and to keep these components updated.
There are continuous developments in technology and businesses can’t always keep up financially. If your business is seeking funds for equipment, or you want to obtain assets for your IT company, here are some types of finance that can lend you a helping hand.
Soft Asset finance can be used to get business equipment such as
- Telephones and communication systems
- EPOS Systems
- Office furniture
With the growth of your business you’ll have the need to hire more employees, which can sometimes require needing more business laptops and other IT equipment. As well as this, a growing business can take on more opportunities which may need you to make some upgrades. With these factors in mind, it can be quite costly for your business, this is where Think Business Loans can help decide the appropriate finance avenue.
- Because the lending is asset-based, it means your business can invest in assets multiple times if required.
- Due to asset-based loans having less qualification criteria, it can often make this form of finance quicker and easier to access.
- Preserves your working capital.
- Access to high standard technology and software.
- As the loan is secured on your business’s asset, in the event of a default, the asset would be seized.
- Costs can be high when your asset is industry-specific or there is limited appeal from the lender.
- Can work out more expensive than buying the equipment outright.
- You do not own the assets so they cannot be classed as an asset within the business.
An established business specialising in building powerful and stable systems for video, audio, graphics, and scientific industries. As well as selling computer equipment online to businesses. Trading since 2013 they are providing their services worldwide and providing to leading creative companies in Europe.
The client enquired about needing funding, as they were expanding at a quick pace which had constraints on cash flow. By taking out a loan it will allow for the business to expand without tightening cash flow.
One of our experts talked through the application and it was decided that the best avenue to take was to take an unsecured loan.
An unsecured business loan is funding that requires a personal guarantee from the lender. Unsecured loans usually require the borrower to show the lender various credentials such as financial history, cash flow forecast, and credit rating.
The benefits of taking an unsecured loan
- The client does not have to put up any business assets as there is no collateral involved.
- They were able to get the funds quickly, and simply due to the nature of the loan type.
With a finance solution put in place, the client was able to successfully expand and able to supply more equipment to businesses, without affecting their cash flow.
To find out more about unsecured business loans click here.
There are lots of different types of asset finances that are currently available on the market which can be difficult to filter down to the best option for your business. Think Business Loans are experts at finding the best lenders that are suitable for your business requirements.
If asset finance does not sound like the best option for your business, complete the loan journey below for loans that your business would be eligible for.