Asset finance benefits

Asset finance benefits include the following:-

• Assets are funded from income stream and not capital.
• Asset finance rates are often cheaper than other methods of finance.
• Asset finance does not use up existing finance facilities.
• The company has the benefit of the use of the asset without fully paying for it.
• Fixed rates are available.
• Tax advantages in some cases

Types of asset finance

Leasing and hire purchase are the two main options available:-

Hire Purchase - Under the terms of a hire purchase agreement the company will own the asset after all the payments have been made but for tax purposes the company can claim capital allowances from the commencement of the agreement which can be offset against taxable profits

Leasing - Under the terms of a leasing agreement the company never owns the asset but effectively rents it from the lessor. The leasing company will claim the capital allowances and passes this on to the company in the form of reduced rentals. Usually the company can offset the rentals against income

At Asset Finance Solutions, we have a good relationship with many of these niche players, and know who can offer what type of funding to whom. Even more importantly our broking service can put you in touch with UK asset finance companies who are innovative enough to devise new ways to help where possible.

As a broker our services are completely free of charge so please contact us with no obligation to see if we can help.