5 reasons why asset finance is as popular as ever

Johnson Reed
3m read

We know that your business needs certain equipment. With our help, you can finance it, freeing investment at a key stage in your business growth. Asset finance can do wonders for your productivity, and more and more people are switching on to the benefits. When funds are otherwise restricted, it allows you to do and earn more, swiftly paying for itself.

We’ve outlined five core reasons for choosing asset finance here…

1. You work towards ownership over time

Instead of paying in one go, you’re able to spread the cost over months or years. Then, at the end of the contract term, you can choose to own the equipment. It’s a highly affordable way to buy and keep the investments that matter. However, the buyout is flexible. You can hand the investment back if there’s still some of the price to cover, or swap it for another contract with new equipment. It’s all down to your personal situation.

2. It gives you the right ‘hard’ assets quickly

Particular investments – vehicles, computers and plant machinery, or anything with a depreciative capital value – are suited to this funding model. We can approve finance in as little as two hours. Shortly after, you’ll be ready to use the equipment. No delays mean you can align it to the rest of your business goals in the short and long term.

3. There’s only one direct debit to manage

Instead of paying for each asset separately, you can finance as many as you want under the same direct debit. This gives you greater control over your financial management. Aside from the certainty of knowing the repayments are fixed for the agreed time frame, you don’t have to follow and record too many different outgoings for tax or budget purposes.

4. You don’t bear any major risk

As opposed to bank loans, asset finance is unsecured. If you miss a few payments, then the lender can’t take other capital (for example, your home) to fulfil the debt. The asset will be taken back, but that’s it – there are no further consequences (unless otherwise stated). By contrast, you’ll probably have to put your property up as capital when approaching a bank for a similar amount.

5. Stable cash flow leads to faster growth

Thanks to the fixed repayment terms, cash flow can be more accurately forecasted. There aren’t any major, one-off costs to surprise you and detract from investment in other areas of the business. Use the spare money for anything else – paying staff, a VAT bill, buying critical software, or funding a new premises.

Each of these advantages can build your confidence and sense of freedom when leading a business. Our Simply Assets package is just what you’ve been looking for. With us, alternative lending has a 96% approval rate. We ensure you gain investments that not only make financial sense, but are open to ownership when the contract term ends. Speak to a Johnson Reed member of the team and reach your extraordinary sooner.