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SME Asset Finance

Asset finance is a business finance option that allows you to buy essential business assets, like equipment or vehicles, by spreading the cost over time through regular payments instead of upfront in one go. This type of finance option can provide essential business start-up support.

 



  

What is asset finance for new business?

 

Asset finance for a new business is a growing business funding method to get the things your business needs, like equipment or vehicles, by paying for them over time instead of all at once. It helps you avoid the burden of a large upfront cost, making it more manageable for your business to buy and use essential assets.

Eligibility and exclusions

 

Asset finance is available for any business that needs important things like equipment, vehicles, or technology to work. It doesn't matter if the business is small or big; this type of finance helps them get those assets without paying everything at once.

Evidence of being able to make finance repayments helps boost your chances of getting SME asset finance.

 

Benefits and scenarios

 

Instead of using a large amount of cash to buy assets outright, SME asset finance lets you spread the cost over time through manageable instalments, leaving more money in your business for day-to-day expenses and unexpected needs.

It also allows you to regularly upgrade your equipment or technology, helping you stay competitive and efficient without the burden of always having to buy new assets at full price.

Risks

 

Using asset finance and leasing means that you'll have to pay back the borrowed money with interest. This can add up and make the overall cost higher than buying the asset outright.

Also, until you fully pay back the loan, the asset belongs to the finance provider, and if you can't make the payments, you may risk losing it.

If you happen to agree to a long-term finance plan for an asset, it might become outdated or less useful in the future, leaving you stuck with something that doesn't meet your business needs anymore.

Things you can use to secure the SME asset finance

 

It's essential to have a good track record of managing debts and loans, and also be able to clearly explain what assets you want to finance and how they'll benefit your business. Lenders want to see that you're responsible with money and that the assets you're getting will be valuable for your business.

Think asset finance and leasing could be a good fit for you?

 

If you’re considering asset finance and leasing, get in touch with us today. One of our specialists will be able to advise you on how to get started with tailored advice for your business.

Frequently Asked Questions:

The lender would review what business assets are available and this could be that the company assets are secured by way of a debenture, plus a director’s personal guarantee to cover the loan if the business cannot repay on default.

If the business cannot repay, the loan, the lender will discuss options with the business; it would also be advisable to speak to an insolvency practitioner. If the loan is not repayable, the lender can take legal action to get repayment of the loan. This could lead to the business going into liquidation and bankruptcy of the individuals.

As the asset being funded is the effective security for asset finance loans, these types of facilities can be arranged very quickly, roughly within 1-3 weeks.

This is information, not financial advice or recommendations

The content and materials featured or linked to are for your information and education only and are not intended to address your personal or business requirements. 

The information does not constitute financial advice or recommendation and should not be considered as such.

SimpliFi is not regulated by the Financial Conduct Authority (FCA), its authors are not financial advisors, and it is therefore not authorised to offer financial advice. 


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