What is asset finance?
The Asset finance is a type of loan that is used to buy equipment. When a firm invest in tangible assets – many things can be bought such as office supplies and large machinery. The Asset Finance is the third most common and popular source of finance for firms, the first being bank overdrafts followed by loans.
Why use asset finance?
Asset finance is a flexible form of finance compared to a bank loan, which provides sufficient cash flow for firms looking to obtain new equipment or other fixed assets.
Facts on asset finance
Why use asset finance?
Asset finance is a flexible form of finance compared to a bank loan, which provides sufficient cash flow for firms looking to obtain new equipment or other fixed assets.
Facts on asset finance
- It is estimated that over 1000 small firms use asset finance every day.
- Asset finance assists over 750,000 companies to invest in equipment.
- In a recent survey of business finance firms had the number of respondents who expected that provision of finance to SMEs would increase was about 42% higher than those who expected it to fall.
- The asset finance accounts for 25% of all fixed capital investment.
- Around £20.8 billion of asset finance was provided to firms and the public sector last year.