Asset financing refers to the process of obtaining funding to acquire assets such as equipment, machinery or vehicles. This type of financing allows businesses to access the assets they need to grow their operations without having to pay the full cost upfront. Instead, the assets are used as collateral for the loan, and the borrower makes regular payments over an agreed-upon period.

Asset financing can be beneficial for businesses that need to invest in expensive assets but do not have the capital to purchase them outright. It can also help businesses to manage their cash flow, as they can spread the cost of the asset over a longer period. Additionally, asset financing can provide tax benefits, as the interest paid on the loan is tax-deductible.

Types Of Asset Financing

There are several types of asset financing including

• lease financing

• hire purchase

• asset-based lending.

The best option for a business will depend on its specific needs and financial situation. It is important to carefully consider the terms and conditions of the financing agreement before signing, and to ensure that the business will be able to meet the repayment obligations.

Our Finance Broker and Mortgage Advisor Kathryn Asmussen has extensive experience in business lending, and is well-equipped to support your needs in this area.

To find out how we can help, contact us today.