asset finance can make a difference.
Asset finance can be a flexible solution
The key to minimising risk when purchasing a new asset is to find the most appropriate method of financing it. You don’t have to take out a large bank loan that will tie you to months of fixed repayments.
One alternative is leasing, which comes in many forms. Almost any form of asset can now be acquired in this way and the different types of lease on offer mean there’s likely to be a product that suits your needs.
You can even lease assets that you’ve already purchased. Sale and leaseback can be a very effective way to increase working capital that’s tied up in fixed assets. You could use that capital to invest in additional assets, which are then used to further expand the business.
Raising the funds to pay leasing or loan costs
Whether you take out a lease or a loan you still have the headache of extra monthly payments. There will be a gap between acquiring the asset and the additional income it generates, so you’ll need funding to cover this.
One option is invoice finance, which lets you benefit from the invoices you’ve already raised on customers but they’re yet to pay. Invoice factoring or discounting could supply you with the added capital you need to keep the cash flow running smoothly as your firm grows.