Asset Finance

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    Scaling a business often requires significant investment in equipment and other large assets. But what if your budget or cash flow can’t accommodate it? Fortunately, business asset finance will allow you to invest in equipment to move your company forward.

    Why use One Commercial Loans for asset finance?

    As a business owner, the right asset financing is crucial to keep your cash flowing, operations running smoothly and to support business growth. However, finding the right finance options for your business needs can be a daunting task, especially when it comes to commercial loans for asset finance.

    One Commercial Loans is ideally placed to assist you in finding the best financing solutions and funding. Whether you are looking to purchase new equipment or commercial vehicles to expand your operations, we work with teams that can help you find an asset finance solution to take your business to the next level.

    What is asset finance?

    Asset finance is a type of financial product that allows businesses to purchase large assets, such as equipment or machinery, by financing them through a lender. The lender provides the required funds, and the business repays the loan over time, with interest.

    Asset finance is a popular option for businesses that need to acquire expensive equipment or machinery but do not have the funding to do so outright. It allows them to spread the cost of the asset over a longer period of time, making it more affordable and manageable.

    How does asset financing work for businesses?

    Asset financing works by lending to businesses that require a new asset (such as vehicles and specialist equipment) but cannot afford to purchase it upfront.

    The loan is paid back over a fixed period, through regular instalments. At the end of the loan period, the asset either belongs to the company, can be purchased by the company, or is returned to the leaseholder.

    Business asset financing is secured against the asset being purchased, which means that if the business is unable to make the repayments, the lender may repossess the asset to recover their funds.

    Types of asset finance we can help with

    This kind of business finance takes many forms, including much-needed equipment leasing, hire purchase, and asset-based lending. Let’s take a look at the most commonly used types of business asset finance.

    Hire Purchase Agreement (HP)

    With HP, the business pays an initial deposit (usually 10-20% of the asset’s value) and then makes fixed monthly payments over an agreed period (usually between one and five years). Once all the payments have been made, the business owns the asset outright.

    Operating lease agreement

    A finance lease agreement allows a business to use the equipment without owning it. The lender purchases the asset and leases it to the business for an agreed period, usually between two and five years.

    This is similar to hire purchase, but the business does not always have the option to purchase the asset at the end of the finance lease term. Instead, the business returns the asset at the end of the lease term or can renew the lease.

    Asset Refinance

    This type of finance agreement allows businesses to release working capital from existing assets they already own, such as equipment or vehicles. The lender advances a percentage of the value, and the business repays the loan over an agreed period.

    Invoice Finance

    This involves the business using unpaid invoices as collateral to secure a loan. The finance provider will provide a loan based on the total of the outstanding invoices.

    Asset-Based Lending

    These types of business loans involve the business using other assets as collateral to secure funding. The finance provider will assess the value of the asset (s) and provide a loan based on that total.

    Overall, asset finance can be a useful way for businesses to acquire essential assets and the latest equipment without having to pay for them upfront in full. It can also provide greater flexibility and affordability than other forms of financing, such as bank loans or overdrafts, and may be easier to obtain for businesses with less-established credit histories.

    Get in touch with One Commercial for Asset Financing

    One Commercial Loans help business customers to source funding between £25k and £2m by way of bridging loansinvestment property loans and asset finance.

    Our model is simple; we match UK businesses with commercial experts who are able to offer finance solutions that are competitive and fast.

    So don’t hesitate to get in touch with One Commercial Loans today and take the first step towards securing a quick decision and the financing you need to help your business grow.

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    About One Commercial

    One Commercial have over 100 years of property experience. At One Commercial we like to use a “one stop shop” approach, utilising the whole market to support our clients in a wide range of property related finance.Their job is to make sure that they have done the hard work by matching your situation to the right commercial lender and for the best deal.

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