The ultimate guide for Startups and SMEs

Asset Finance for Small Business

Asset Finance Can Help Startups and SME

Whatever industry you are in, finding money to start and grow your business can be overwhelming. Getting an asset finance package that is a good fit for your venture can feel like a long and arduous search.

Coates understands this and, through our twenty-plus years of experience, we have arranged finance that was the perfect fit for over a thousand businesses, each with unique circumstances and needs. 

And, we do more than just find a product and arrange the money. We partner with you to support and guide your application.

To prepare you for this process, we’ve written a short guide on what asset finance is and how it can help you establish and grow your business.

How does asset Finance Work?

What is Asset Finance?

Asset finance is the purchase of equipment and machinery (assets) for businesses who don’t have the funds available to pay for them outright. 

Instead, you pay for them over an agreed period of time with one of a number of different ownership options for the asset. 

You may use your financial reputation (in the form of your balance sheet, credit history and forecasts) to acquire the money, or use assets already owned by your business as security against the loan. You can also use the asset you are purchasing as security against a loan.

What are the benefits of asset-based lending?

There are a number of advantages when you choose asset-based lending:

  • spread the cost of your purchases with fixed monthly payments, so payment is predictable
  • no large upfront expense incurred on high-cost items
  • the assets themselves can act as security on the loan
  • more control over your cashflow while allowing you to grow

Asset finance is often used as an alternative to bank loans, overdrafts or credit cards as it usually offers much more attractive interest rates.

How can asset finance work for you?

In a nutshell, asset finance is when you borrow money to pay for physical assets to equip your business. This can be to buy new assets or money borrowed against assets you already own.

Depending on the asset you wish to buy, how you wish to own it, how much you want to borrow and how long you want to keep the asset, we can guide you on the best of a range of finance options.

You then complete a simple application form, provide company information and you’ll usually receive a decision within 48 hours.

Once your asset finance is approved you can obtain the assets you need and expand your business.

There are no hidden costs, no complicated forms and you will receive the best support and advice from our team of professional and friendly experts. We will take away the stress of the form filling and the worry out of overwhelming decisions.

How can asset finance help my business grow?

Asset finance offers from Coates are great for small businesses and SMEs alike. You can grow your business by:

  • increasing the equipment you own to take on more customers
  • refinancing existing assets to release cash or to invest in other projects
  • keeping ahead of technological advances so you are ahead of the competition
  • lease-hiring of shorter-life assets (such as vehicles) so you never have to find the capital to replace them

How do you finance an asset?

You can buy, lease or refinance any assets your business owns. This can be done in four ways, below. There are no huge upfront costs, you can spread payments over a period of time that suits you.

This is commonly used to finance vehicles including cars, vans, buses, trucks and HGVs, as well as machinery and commercial equipment. All you have to do is pay an agreed amount as a deposit to secure your asset.

A finance lease is similar to a loan agreement, but a lease gives you the option at the end of the agreement to hand back the asset, carry on renting or buy outright. 

Coates will purchase the assets your business needs for you and lease them back to you over a negotiated time period.

Operating lease finance is an agreement that allows your business to use and operate assets without committing to ownership. With an operating lease the rental term is typically shorter than the life of the asset.

Asset refinance is an alternative funding option for businesses in need of working capital right away.

With a sale and leaseback agreement, you can sell your existing assets to a lender in return for working capital. you can then still use the equipment by leasing it back from the lender.

Asset Finance Solutions for Every Type of Business

Industries we cover:

The Types of Assets You can Finance

Hard Assets

Hard assets are physical items that a company owns. They can be long term, in the shape of machinery or equipment, or short term, in the case of inventory.

List of Hard Assets:

Soft Assets

Soft assets are typically the fixtures and fittings of a business that are used regularly to operate and manage the organisation.

We'll Help You Every Step Of The Way

Got questions! We got answers.

Getting the finance you need to grow your business doesn’t need to hard.

We’ve made it as simple as 1,2,3

Contact us today to speak to a friendly and knowledgeable finance professional.

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