Asset Finance
Fund Asset purchases to grow your business
Funding a new asset purchase could be the answer to your business growth. Asset finance can come in various different forms and at a range of different sizes. Working with an adviser can simplify the process and quickly show you what offers are available.
Purpose
Terms
Purpose
Asset purchases can be a large bottleneck for business growth, or a start up cost to get the business off the ground. Asset lending can come in a range of shapes and sizes. Options are available for sole traders
Standard Vehicles
Vehicles are one of the most common assets being sought. This can often be tradies looking for a new work van or something higher value like a milk tanker. Some lenders will be less interested in taking the vehicle on as security if it becomes too specialist and terms can be vastly different between options.
Heavy Machinery
Another high cost but necessary asset required for some businesses is heavy machinery. Often this is high value and some lending options can be better suited than others. Agricultural lending is similar but may require a specialist lender that focuses on the agri industry.
Other Assets
If you have any other asset that would help your business then it could be something that a lender is happy to provide finance for. This can be at any scale but in some cases, providing other existing security or providing a General Security Agreement may get you access to more favourable lending options.
Terms
Asset purchases can be a large bottleneck for business growth, or a start up cost to get the business off the ground. Most lending options would like to take the asset being purchased as a security to mitigate the risk of providing the lending.
Loan Term
For lending where the asset is being used as security, this will typically see a loan term up to 7 years. Depending on the lender and type of asset this could be lower which raises regular repayments. Flexible funding options that use residential security, either through main banks or specialist non banks, may provide terms which put less strain on cash flow.
Pricing
Another high cost but necessary asset required for some businesses is heavy machinery. Often this is high value and some lending options can be better suited than others. Agricultural lending is similar but may require a specialist lender that focuses on the agri industry.
Extra Fees
A common fee that can catch borrowers off guard is a balloon payment. This a final larger lump sum payment required at the end of your loan term.