Asset finance, loans that enable businesses to obtain funding for the purchase of assets they need to successfully operate and grow, are on the rise according to the Finance & Leasing Association (FLA).
In July 2021, total asset finance new business (primarily leasing and hire purchase) grew by 3% when compared to the same month in 2020. During the period of January 2021 to July 2021, new business was 24% higher than in the same period in last year.
The business equipment finance and plant and machinery finance sectors reported new business up in July by 47% and 10% respectively, compared with the same month in 2020. However, new business in the IT equipment finance sector fell by 51% over the same period.
Cornerstone Commercial Finance provide funding for the equipment you need for your business without you having to dip into your working capital.
Asset finance can be used for a variety of assets such as cars and vehicles, tools, furniture, mobile buildings, containers, equipment, software, machinery, systems, and other technologies.
In some instances, you may wish to secure ownership of assets by paying in instalments over time. This is also known as hire purchase, where the cost of an asset can be spread over its useful working life on a fixed rate or base rate, and paid for out of the revenue it earns.
In other cases, a leasing agreement may be more suitable, whereby a business has full use of an asset for an agreed period, despite the asset being owned by the funder.
Depending on the needs of your business, Cornerstone Commercial Finance may be able to help. Get in touch today to find out more.