How asset finance can grow your business
Many businesses turn to asset finance to enable their operations to grow. But, what is this exactly and how can growth be achieved in this way?
Asset finance explained
It’s a way of leasing equipment without buying it outright, where you make payments over a period of specified time. It’s also a solution for borrowing against any fixed asset that you own, such as technology.
Asset finance and business growth
The main benefit to asset financing is that it gives businesses access to equipment they might need to operate, but can’t afford to purchase outright. According to MoneySuperMarket, this makes it easier to manage cashflow and keep accounts in the black, while investing in the assets a growing business needs. Crucially, businesses get access to the latest equipment, which can improve efficiency and encourage growth.
If you need some fast cash to make the most of an impromptu business opportunity that could increase sales, firms might not have time to organise a traditional bank loan. By arranging asset finance instead, such as from a New Business Loans Northern Ireland business, you can use this to borrow against a fixed asset you own, such as vehicles or equipment.
Businesses might also choose to take out asset finance from a New Business Loans Northern Ireland company if they need to tide themselves over while waiting for late invoice payments. This might help to pay suppliers and staff, for example, and may mean the difference between buckling under and continuing growth.
Every business looking to thrive knows how important it is to cut costs where possible, and one way in which asset finance can save on the bills is by leasing equipment. The benefit of this is that all lease payments can be offset against any profits, as they are classed as business expenses. This will help to save on your tax bills.