Types of Asset Finance
Hire purchase is the branch of asset finance that lets you purchase the asset but by spreading the cost over time, rather than in one large sum. You pay back for the asset in installments over an agreed term.
Another style of asset finance is asset refinance. This involves leveraging the assets you already own to release cash. It is a great way of using the equity contained in high value business assets that are logged on your balance sheet.
Sales and Leaseback
Asset leasing gives businesses the option of borrowing an asset for a fixed period, rather than having to buy it outright. Not only does this overcome the cash flow implications of paying for a new piece of equipment or machinery up front, but it also means the issue of asset depreciation is avoided.
A sale and leaseback is an arrangement in which the company that sells an asset can lease back that same asset from the purchaser. It is a simple financial transaction which allows a person to lease an asset back to themselves after selling it.