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Lombard

Asset finance explained

What is asset finance?

It is a finance option businesses can use to grow by acquiring much needed equipment, such as vehicle fleets, farm machinery and even aircrafts. You pay a regular amount to use the asset over an agreed period, avoiding the full cost of buying outright.

 

Financial benefits of asset finance

Asset finance could make it easier to raise funds for additional finance needs, in contrast to traditional loans. Spreading costs of an asset and avoiding ownership costs such as maintenance, help maintain cash flow in your business. Asset financing also differs from a standard loan in that an asset secures the finance agreement. Take into account your overall borrowing needs when considering finance options.

For more information on asset finance, including the business benefits check out our FAQs.

What are the business advantages of asset finance?

Your business could gain a competitive edge by accessing the latest equipment and technological innovations, all whilst being able to spread the cost of the asset over a long period and gaining potential tax benefits.

Tax reliefs referred to are those applying under current legislation which may change. The availability and value of any tax reliefs will depend on your individual circumstances.

 

Firms that need to maintain close control over working capital and cash flow could benefit from these advantages to asset finance:

What are the types of asset finance available at Lombard?

Hire Purchase

Flexible interest rates – With a choice of fixed or variable rates, you could make the choice that suits you and your business best.

Business Contract Hire

Access the latest vehicles without worrying about depreciation and other risks of ownership.

Chattel Loan Mortgage

Use assets such as aircraft or machinery as security. At the end of the agreement, the mortgage is removed.

Finance Lease

Enjoy the benefits of ownership without the risk like depreciation or time and costs of disposal.

Operating Lease

Lease high value equipment, vehicles, or machinery and enjoy lower monthly repayments and reduced risks.

Intellectual Property

Extract the value from your firm’s intangible assets and access cash without surrendering equity or control.

Get an asset finance quote today

To discuss asset finance options, and to receive expert consultation for your business, don’t hesitate to get in contact with one of our experts or simply fill out our quote form below.