There will be times when the last thing you want to do is utilise your capital to buy new equipment. An asset finance solution preserves your valuable working capital and can be structured to meet your particular cash flow requirements.
With no deposit required, a fixed interest rate and the option to make repayments only in the months when you receive income (subject to approval and conditions), asset finance offers financial certainty and flexibility.
A hire purchase arrangement is an agreement to acquire an asset over time for use in your business. During the hiring period, the Bank owns the asset, with ownership automatically transferring to you when all agreed repayments have been made.
Finance lease for vehicles and equipment
A finance lease provides 100% finance to acquire an asset for use in your business. It is essentially a rental agreement where the Bank owns the asset and you then lease it for an agreed term and rental amount.
An operating lease is an agreement to rent an asset for use in your business for a fixed period. It can be an efficient and cost-effective financing strategy if you are continually upgrading your vehicles and equipment, or if you want to rent rather than own your assets. At the end of the lease period, you simply return the asset to the Bank, (subject to return conditions) without the liability of a residual value.
An equipment loan (also known as a Chattel Mortgage or Bill of Sale) is a loan agreement where you borrow funds to purchase an asset. You provide security for the loan by way of a mortgage to the Bank over the asset financed.
Fleet leasing and management
If you operate more than five vehicles (either in the form of a tool of trade fleet, or employee salary packaging arrangements), you may like to consider our fleet management services.
Working capital and lines of credit are preserved for use in your business.
Payments can be structured to suit your particular cash flow pattern.
Standard procedures are used to simplify approval and documentation, which means a quick turnaround between the initial inquiry and funding.
The asset finance solution you choose depends on the nature of your business and the type of equipment you need. You should also consult with your accountant and/or solicitor to discuss the tax and accounting implications arising from different asset financing options.