How Does Asset Finance Work?

Do You Know How Asset Finance Works?

For many entrepreneurs, asset finance can appear a daunting proposition, but in reality, asset finance is merely another tool which when utilised correctly, can help to grow your business. As with any business decision, the key to using asset financing effectively is understanding how it works and the different types of asset finance. This is where the staff at AW Capital can assist with their expert knowledge and understanding of this particular product.

Essentially, asset finance provides businesses with the opportunity to purchase critical but often expensive equipment to expand their business without significantly impacting its cash flow. There is a range of different options, and the secret to the successful use of asset financing is choosing the right product for your individual circumstances.

What Types of Asset Can Be Financed?

With the knowledge and expertise of AW Capital, we can typically find a provider to finance virtually any type of equipment your business requires. Over the years, we have worked with a wide range of industries, including construction, agriculture, transportation, education, green energy, waste disposal, and healthcare, to name just a few.

Hard and Soft Assets

Within the asset finance industry, business assets are often referred to as either hard or soft assets. Hard assets are what the market has traditionally focused on, as they are essentially durable physical pieces of equipment. Some examples of these would include

  • Trucks
  • Printing Presses
  • Tractors
  • Manufacturing Equipment

As the market has developed, the industry will now consider asset finance for items which are referred to as ‘soft assets.’ Soft Assets are items that are perceived to have a low intrinsic open market resale value. Because these types of items do not provide a lender with any security compared with a hard asset, lenders consider a soft asset is essentially an unsecured loan. If your company needs to finance a soft asset, then your companies credit file will play a much more significant part in the decision-making process. Some examples of soft assets would include

  • Security Systems
  • Catering Equipment
  • Vending Machines
  • Gym Equipment

How Can Asset Finance Help My Business To Grow?

For any business to grow and flourish, it needs to be able to invest in itself, and depending on the type of industry, continually update the equipment it needs to operate. Business asset finance provides companies with the ability to invest in assets that will support the growth of the business, enabling expansion and investment in equipment, which the business might not otherwise be in a position to afford.

Rather than tying up thousands of pounds of the company’s money, asset finance allows that capital to be more effectively utilised, by spreading the cost and improving cash flow. If you would like to find out about different types of asset finance products you can read about them here (insert link to What is Asset Finance blog).

Contact AW Capital To Discuss The Options Available To Your Company

If you have been contemplating different types of business financing to help spread the cost of equipment purchases, then asset finance may be the perfect solution you have been searching for. If you want to discuss your options with a company that is focused on finding the best solutions for their clients without any pressure in a relaxed atmosphere, then contact AW Capital today to arrange a free no-obligation consultation.

We look forward to playing a vital role in taking your business to the next level!