Asset based lending is a way of generating cash flow for your business at a time when you need it most. This could just be to ensure that you have enough cash to cover the cost of bills and employment, or to enable you to have the means with which to expand a business. One area of asset-based lending is that of leasing options, and at First4Commercial we can provide you with advice on which route to take to suit your specific company needs.
Finance leasing and hire/lease purchase are undertaken as an alternative to purchasing assets. The acquisition of assets can be a large commitment that can be extremely expensive, especially for those companies in need of expensive capital equipment and without the cash to do so.
Instead of looking for the finance to purchase the equipment outright you can instead look to spread the cost of the acquisition and to do so in a way that it is timed with revenue generation of the business. Hire purchase and leasing are two effective ways of securing medium-term commercial finance to invest in capital assets for growing companies.
The major benefit to this approach is that the company gets access to an asset over a fixed period of time, making regular payments throughout that period. The company chooses the exact equipment that it needs to use, and the finance company in question will buy that on behalf of the business. It offers flexibility and does not put as much pressure on the cashflow of a company at critical stages in its growth.
To find out more about asset based lending for your commercial venture please contact the First4Commercial team today on 01277 620083 or firstname.lastname@example.org.