Asset finance is a technique that can help spread the expense of acquiring new plant and equipment with a low initial investment. It can also unlock the value of a company’s current assets and equipment to deliver a financial boost.
The advantages of asset financing include repayments that correspond to the asset’s income stream, tax breaks, and greater working capital.
Benefits from Close Asset Finance
- Industry expertise that is second to none
- Excellent level of customer service
- Access to our relationships with large manufacturers and retailers
- Rapid decision-making
- Tailored solutions to meet specific business needs
- Seasonal payment schedules
- Short and long-term lending options
Close Asset Finance Products
- Hire Purchase
- Refinance / Capital Release
- Operating Lease
- Finance Lease
Hire Purchase enables firms to acquire an asset while paying for it over a predetermined period of time – the term. They have the option to purchase the asset outright at the conclusion of the period.
It allows firms to spread the expense of their investment throughout the asset’s useful life, making budgeting easier. Hire Purchase is ideally suited for obtaining resalable cars, machinery, construction, and commercial equipment.
Refinance / Capital Release
Refinancing (Capital Release) is a rapid way to acquire capital from a company’s existing balance sheet assets for usage elsewhere in the company, such as to fund a deposit on new equipment or improve cash flow.
HP’s Sale and Back is a sort of refinancing that can be utilised against the majority of equipment types, making it appropriate for businesses of all sizes, including sole proprietorships. We purchase the asset and then finance it back to the firm. Repayments are determined based on the income stream that will be generated by the asset, and at the conclusion of the refinancing term, the borrower will own the asset.
This choice applies regardless of whether they already own the asset or are leasing it from another source.
Our Finance Lease solutions allow businesses to utilise the necessary equipment without having to purchase it completely.
They pay us rent for full use of the property. The duration of the lease is adaptable to their needs and financial flow. During this term, they will pay us the total asset price, plus interest. Then, at the conclusion of the primary lease period, they have the option to:
Enter a secondary rental period to continue utilising the asset.
Sell the asset and retain a percentage of the proceeds.
An Operating Lease, like a Finance Lease, allows a company to rent an asset from us for as long as they need it. The main distinction between the two is that an Operating Lease only covers a portion of the asset’s useful life. This implies they pay a lower rental because the cost is dependent on the difference between the original purchase price of the item and its residual value at the conclusion of the agreement.
The company can use the asset for as long as they need it without having to worry about disposing of it or recouping its residual value.
Why to Choose close Brothers – Asset Finance
Their companies offer a variety of financial services to small businesses and individuals in the United Kingdom.