Growing your Business with Asset Finance in 2024

This time of year, business owners will be sitting down and mapping out what they want to achieve financially in 2024.

One of the most effective ways to grow your business is with the help of asset finance. There are a number of advantages that asset finance can offer businesses, in terms of flexibility, cost savings and freeing up cash.

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Secure assets

The major benefit of asset financing lies in its ability to get businesses access to equipment and machinery, which can then be used to drive growth. Acquiring these assets enables a business to not only expand its operational capabilities but to also generate revenue above the cost of owning the equipment.

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Reduce upfront costs

Asset finance allows businesses to reduce upfront costs. With the potential to fund a significant portion of the asset's purchase cost without initial financial strain, businesses can seize growth opportunities without draining their working capital. 

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Mitigating depreciation risks

When purchasing high-value assets outright, businesses often carry the risk of depreciation. Asset financing shifts this burden to the finance company, providing businesses with a safeguard against the erosion of asset value over time. This ensures that your assets remain an asset to your business, both operationally and financially.

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Tax deductible repayments

Asset finance offers a tax-efficient avenue for funding business purchases. Regular repayments become tax-deductible expenses, offering businesses a financial advantage. This not only eases financial burden but also improves the overall cost-effectiveness of acquiring assets crucial for growth.

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Boosting cash flow and working capital

Without the need for upfront payments, asset finance can play an important role in improving a business's cash flow management. Businesses can spread the cost of assets over an extended period, optimising their working capital. This can allow businesses to strategically invest in areas that will lead to further revenue growth and sustained expansion.

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Lower maintenance costs

Depending on the terms of the asset financing arrangement, the responsibility for maintenance and repairs may fall on the finance company. This shields businesses from significant, unexpected expenses and ensures that assets are well-maintained.

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No collateral

Unlike traditional loans that often require homes or properties as collateral, asset finance relies on the value of the asset itself as security. This lack of stringent collateral requirements makes asset financing a flexible and less restrictive funding avenue. Businesses can leverage this flexibility to tailor financing arrangements that align with their own growth goals.

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