4th Revolution Consulting Ltd
Asset Finance:
Unlocking the Potential of Your Assets
Asset Finance
Is it right for your Business?
What is Asset Finance?
Asset Finance is a financial tool that enables businesses to acquire equipment, vehicles, machinery, or any other capital asset without paying the full amount upfront. Instead, payments are spread over an agreed period, making it easier to manage cash flow and budget effectively. This form of financing can cover various agreements, such as leasing or hire purchase arrangements, tailored to suit different business needs.
Why is it Useful?
Asset Finance is a boon for businesses looking to expand operations or upgrade their capabilities without straining their working capital. It offers the flexibility to access the latest technology or equipment, maintaining competitive edge with minimal initial expenditure. This financing method also provides tax benefits in some jurisdictions and can be a more cost-effective alternative to traditional loans, with payments structured to match the income generated from the use of the asset. Furthermore, it avoids the need to dip into critical cash reserves, ensuring that businesses can continue to invest in growth opportunities.
Example
Imagine a logistics company, Speedy Deliveries, needing to update its fleet to meet increasing demand. With Asset Finance, Speedy was able to acquire state-of-the-art electric delivery vans without a hefty upfront cost. The payment terms were aligned with the company’s cash flow, enabling Speedy to expand its operations sustainably. As a result, the company not only enhanced its delivery capacity but also improved its environmental footprint, appealing to a broader customer base.
What types of assets can be financed?
Almost any tangible asset used for business purposes, from vehicles and machinery to IT equipment and office furniture.
How does Asset Finance affect my business’s balance sheet?
Depending on the type of agreement, the financed asset may appear on your balance sheet, potentially impacting your company’s asset-to-liability ratio.
Can startups or small businesses access Asset Finance?
Yes, Asset Finance is accessible to businesses of all sizes, including startups, provided they can demonstrate the ability to meet payment obligations.
What are the main differences between leasing and hire purchase?
Leasing involves renting an asset for a period, with no option to own it, while hire purchase agreements allow for the asset’s ownership to transfer to the business after all payments are made.
Is it possible to finance an asset I already own?
Yes, through asset refinancing, businesses can release the equity from assets they already own, providing additional working capital.
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Why 4th Revolution?
Since the financial upheaval of 2008, the landscape of business finance has evolved dramatically, embracing a new era of innovative lending. The emergence of cutting-edge lenders offering alternative funding solutions has redefined the role of traditional high street banks in meeting the diverse financial needs of businesses.
This transformation has heralded a golden age for specialist lenders, injecting cash flow and enabling businesses to flourish and grow in ways previously unimagined. Yet, the abundance of choice in the lending market raises the question: which funding partner truly aligns with your business aspirations?
Enter the fray, the Global Pandemic, adding layers of complexity to the already labyrinthine world of business finance. This is where 4th Revolution steps in. Boasting over 60 years of combined experience in business and finance, 4th Revolution not only understands this intricate market but also maintains robust relationships with key figures across a spectrum of brokers & lenders. This positions us uniquely to secure the financing that best suits your needs.
At 4th Revolution, we alleviate the pressure of navigating the financial maze, ensuring you partner with the most fitting broker or lender. Our mission is to remove the financial stress, allowing you to concentrate on what you do best: running your business. With us, your focus remains on growth and innovation, knowing your financial backing is secure and precisely tailored to your journey.
4th Revolution Consulting Ltd is not a finance company, we provide introductory services to brokers such as Navigate Commercial Finance
