How asset finance can help your business grow in 2024

How can I use asset finance to grow my business?

Finding the right type of finance is crucial in helping your business to grow in 2024 but with so many alternative funding options available it can be difficult to know which is the most appropriate.

Asset finance is just one form of flexible funding that provides valuable support to your working capital as well as flexibility at the end of the loan agreement. You can use it to purchase new assets, such as machinery and equipment, but also to refinance existing assets and boost cash.

What is asset finance?

Asset finance enables your business to grow by purchasing new assets over an extended term. You don’t have to use up valuable business capital and can repay in fixed amounts over a pre-determined length of time.

It can be used for hard assets, such as plant and machinery, or to purchase a new vehicle to support your business activities. It’s also ideal for upgrading computer equipment or office furniture and can help you purchase other ‘soft’ assets.

Asset refinancing is a further option that may be suitable, and this leverages the value locked inside your existing assets. A cash lump sum is released when you refinance with no interruption in your right to use the asset. Your business then repays the lender under agreed terms and becomes the legal owner again when the loan is repaid.

With so many lenders offering asset finance these days, it’s helpful to have support in sourcing and applying for this type of funding. UK Business Finance can find the best quotes using a whole-of-market approach and make an application on your behalf.

How will asset finance help your business develop in 2024?

Support for cash flow

Operating with positive cash flow is a fundamental prerequisite to growth for any business, as without sufficient working capital to pay the bills a company can quickly decline. Asset finance supports your business cash flow by keeping it stable with regular fixed repayments and a fixed borrowing term.

Preserves business capital

An asset finance agreement means you don’t have to use valuable business capital when you purchase a new asset - it leaves the money available for other strategic investments and growth plans in 2024 and beyond.

Flexibility

The term asset finance incorporates a range of financial products, including hire purchase and equipment leasing. These products offer flexibility when they complete, so you can become the legal owner if required, or perhaps upgrade the asset and negotiate a new lease agreement.

Budget and plan with confidence

The fixed regular repayment schedule associated with asset financing makes budgeting easier and allows you to make strategic plans for your business with more confidence. Hire purchase agreements typically last for up to six years and are a medium-term financing solution that supports growth in 2024 and for the years ahead.

If you would like more information on asset finance and how it can help your business grow, please get in touch with UK Business Finance. We’re experienced commercial finance brokers and can find the most suitable lender for your needs.