Over the next week we will be detailing the various types of asset finance available to businesses, the strengths, weaknesses and the general overview of the products available. Its important to remember that with any commercial product it isn’t a ‘one size fits all’ scenario and your broker, intermediary or financial advisor should advise accordingly.
- Asset refinancing
When most businesses think of asset finance what they’re actually thinking of is ‘asset refinancing’ – in lay terms ‘the securing of finance against an asset i.e. property or machinery’ The repayment of the termed facility typically carries less risk for the lender and is generally viewed as a ‘cheaper protect’ due to the pricing associated.
The second facet of asset refinancing involves the selling of the asset to the lender for a lump sum drawdown. The business would then lease the equipment from the lender until repayment is made, plus interest.
Click, connect and stay up to date with the latest business news by starting a live chat, calling in or requesting a call back.