Get ahead with asset finance

One of the biggest headaches for most growing businesses and those coming out of recession is investing in major new assets.

At Yorkshire Bank we are increasingly being asked to look at asset finance for members, which can help them obtain the funding required to purchase the key assets they need to run and grow their business.

Asset finance can be used to ease a company’s cash flow through regular payments over an agreed period of time – rather than paying cash outright for capital assets which can be a significant drain on working capital.

Basically, similar to a mortgage being secured against a property, asset finance is secured against the asset being financed.

Asset finance can benefit many industries, from manufacturing, engineering and agriculture to plant hire and transport. We have also assisted professional entities such as accountants and solicitors in funding indemnity insurance.

And one of the main advantages of asset finance is its flexibility – especially the choice of fixed or variable repayments over the life of the asset to suit a company’s cash flow.

For instance, if a business has seasonal highs and lows it is possible to structure repayments to meet their specific requirements. This means a business can arrange to make higher repayments at periods when the company’s cash flow is at its strongest.

There are many funding solutions available which offer a range of benefits to businesses, including:
• Cash injection – frees up day-to-day capital to use in more productive ways
• Asset life – repayment options are available reflect the income generated by the asset over its useful working life
• Planning – agreed rental repayments can make budgeting easier
• Control – pre-arranged finance can give the freedom and flexibility of a cash buyer
• Knowledge – companies can stay up-to-date and benefit from the latest technology, plant or vehicles

In essence, asset finance allows businesses to stay ahead by offering structured solutions which can maximise their resources. Assets can be acquired both in the UK and abroad – whilst optimising cash flow and also providing the flexibility to capitalise on future opportunities.

Andrea Anderson, asset finance partner, Yorkshire Bank.