Business Finance – Purchasing a Major Asset
Are you looking to expand your business with a strategic acquisition or purchasing a major asset?
Business Finance can help take the pressure off your cashflow and unlock opportunities.
If your business is looking to acquire another business or invest in a large asset, such as specialist plant or machinery, an injection of capital may be required. Whether it’s for scalability, efficiency, or strategic expansion, the right assets can accelerate a start-up’s growth, making Business Finance a bridge to greater potential and success.
Business Finance can be used for challenges such as:
- Upfront Costs: Major assets can be significant investments and may be beyond the immediate financial capacity of a new business.
- Scalability: Investing in a major asset can enable your start-up to scale operations, produce at higher capacities, or deliver services more efficiently.
- Return on Investment: Although the initial cost of acquiring a significant asset is high, it can yield returns over an extended period.
- Efficiency: Some assets, like advanced machinery or technology, can optimise operations, reduce labour, and increase production rates.
Business Finance Options Include:
Asset Finance
This product allows a business to acquire assets without putting additional pressure on cashflow or needing to raise a significant amount of working capital. Products vary, but it generally involves leasing an asset and making monthly payments.
Invoice Finance
Finance your invoices to raise the monies owed to you by your trade debtors and you no longer have to wait the 30, 60, 90 or 120 days credit terms imposed on your business.
Commercial Mortgages
A loan that involves paying a deposit followed by monthly repayments with variable or fixed interest rates.
Bridging Loans
A loan that can be used to “bridge” a gap in a business’s finances and provide quick access to capital. Due to the short-term loan period and higher rates of interest compared to other forms of Business Finance, Bridging Loans are typically used for major business purchases.
Commercial Fleet Finance
This is used to fund the purchase of a fleet of vehicles. The main options are:
- Contract Hire: This provides access to vehicles in return for fixed rental payments over a set period.
- Finance Lease: The total cost is paid in monthly instalments via lower monthly instalments with a final payment at the end of the lease based on the vehicle’s expected re-sale value.
- Hire Purchase: A vehicle is purchased by making fixed payments and interest during a specified period.
For further information, and to discuss any of the above Business Finance options, we can talk you through all products to give you a greater understanding of how they could help your company, call our office – we’d be delighted to help! 01204 398816 😊
