We are an appointed broker of Lombard North Central PLC
What is asset finance suitable for?
Asset finance is suitable for any business in virtually any sector that requires financing for the acquisition of plant, machinery, vehicles or business equipment. You can use it for equipment that ranges from several thousand pounds to several million, depending on your business needs. Assets that are typically funded in this way are of a tangible nature with a readily available resale market.
Why not just use cash?
If your business has the money available, then it could be worth considering this option. Your business will own the asset outright and you will also be able to claim the capital allowances. But paying cash upfront will exhaust working capital that could be better invested elsewhere, such as paying your suppliers or expanding your business.
Why don’t I just borrow the money from my bank?
Ideally, overdrafts should only be used to fund short-
Does my business need a history of trading profitably to qualify?
This will depend on the provider. Most mainstream finance providers will indeed look at a busines’s credit history and growth prospects to satisfy themselves that the repayments can be met. Repossessing the asset is seen as the last resort . Some providers are specialist in a particular asset and have established disposal routes should they need to enforce the security. These providers will often place a greater emphasis on the asset.
What is a balloon payment?
This is a final lump sum payment , often reflecting the estimated value of the asset at the end of the agreement. By opting for such a payment, the monthly instalments can be reduced, but you will pay more interest overall as the capital sum is not reducing at the rate it would be if the repayments were geared to cover the loan in full.
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