Quick Stats on Asset Finance
Why would a business use Asset Finance?
Asset finance is a great way for businesses to finance the purchase of specific equipment, motor vehicles, machinery, technology and computers or specific tools for the business.
There are different finance products for asset finance that each have positives and drawbacks. These include leases, chattel mortgage and hire-purchases.
The key differences between the products come down to the ownership of the asset itself. For example under a lease the lender technically owns the asset and 'rents' it to you to use. This might sound strange but the advantage to this arrangement is that you get tax benefits and can write-off some or all of the interest expense.
This means you pay for the equipment overtime which gives you improved cash flow than paying upfront and the extra cost of interest is often negated. Similarly, a Chattel Mortgage gives you a cash flow advantage but you own the asset so you can claim depreciation.
Skyward Financial is a specialist for asset finance and can help your business grow by finding you the optimal finance solution.