Resources >   Business Finance  >  

7 benefits of asset finance that could help your business 

Business Finance

7 benefits of asset finance that could help your business 

Updated: 13 May 2024

If you’re looking to grow your business by investing in new assets, you may be considering which type of finance is best suited to your needs. Asset finance could be a great option if you’re looking for new or used assets, such as vehicles, machinery or equipment, or to raise finance against an existing asset.

When you apply for asset finance through our dedicated asset finance service, our team of experts will find deals for you from a range of providers that work for you and your business. Have no deposit? Looking for flexible repayment options? Together we will look at what’s most important to you and then structure a deal that best meets those needs.

Here are some of the common features that our customers ask for, and that we can help you with. 

1. Flexible repayment options

Want to overpay? Or settle early? If these are important features for you, then our team of experts will help you find an asset finance deal that includes flexible repayment options. Some providers also offer seasonal payments, which allows you to pay off more at times of the year when your cash flow is strongest. 

2. Low or no deposit 

If you don’t have the money to put down a lump sum as a deposit, we can still help. If you do want to pay a small deposit to help with your overall costs, that’s fine as well. That means you could get the asset you’re looking for today and use it to generate extra revenue, then pay it off later. 

3. Low overall cost

If lower overall cost is your most important factor, we can find deals for that too. Asset finance is often cheaper than a standard business loan, and we work with a number of low rate lenders that can help keep the cost of credit down. That means you get healthier margins and happier bank statements. 

4. Options for balloon payment

At the end of a contract, there is often a lump sum needed to cover the outstanding balance, which is known as a balloon payment. Having a balloon payment option could lower your monthly costs. If this would help you, we can look for deals with balloon payment options.

5. Flexibility in where you can purchase your asset

Unlike other providers, with our asset finance you won’t be tied into purchasing the asset from any specific dealer, so you have the option to buy the asset you want, from the vendor you want. That means you could buy a van from Autotrader or an independent seller,  giving you the opportunity to find the best deal for your business.  

6. Options for no personal guarantee

Some of our customers prefer not to put down a personal guarantee for their loans. With asset finance, the asset acts as security on the loan, so if you fail to meet your repayments, the lender can sell the asset to reduce the balance owed by your business. This makes the loan less risky to lenders, and some providers don’t require a personal guarantee. If that would be a big advantage to you, our team can look for such deals on your behalf. 

7. Tax benefits

Thanks to capital allowance tax breaks, you could deduct the full cost of qualifying vehicles, machinery and equipment from your taxable profits, saving you up to 25% on the cost of your new asset. Electric and emission-free vehicles are also eligible for 100% tax relief. You could also benefit from VAT deferrals, or pay the VAT amount as your deposit to claim back later. Speak to a financial advisor or tax expert to see what you could qualify for. 

How to apply at Funding Circle

Through our panel of trusted advisors, you could get an asset finance deal of up to £5 million, with terms of between 1 and 7 years. Once you’ve applied you’ll be assigned a dedicated Account Manager who will listen to your needs and find deals from our partners, meaning we can offer competitive rates and flexible deals.

At Funding Circle we’ll always look to get you the right product for your business. When you apply for asset finance through Funding Circle we can assess you for a business loan at the same time, saving you time and effort. If we believe one of our other products would be a better fit for you, we’ll let you know. 

Find out more about how we can help you get asset finance that fits your business.

13/05/24: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.

Great Review: