Many businesses have found the asset finance application process to be relatively straightforward. There are, however, a number of things to consider before applying.
Identifying suitable assets
Firstly, you need to identify existing business assets that you could use to raise funds, or to identify new assets that you would like to own or rent.
Working out which form of asset finance you require
If you want to acquire a new asset, you can rent it initially and then buy it (hire purchase), or simply rent it for a specified period (asset leasing).
If you have existing assets, you can choose to take out a loan using an asset as security (asset re-finance) or sell the asset while continuing to have use of it (sale and leaseback).
Getting your paperwork together
Documentation that a prospective provider of finance might want to see from you includes:
- Identity verification documents
- Bank statements
- Several years of financial statements, such as profit and loss accounts, balance sheets and cash flow statements
- Cash flow forecasts for the immediate future
- A business plan if you are considering any expansion or a significant new venture
They may also carry out other checks, such as looking at your Companies House registration or running a credit check on you.
The lender is also likely to have its own application form, where they ask questions about you and your business. This form is likely to be completed online. Here at Funding Bay, we have our own online form, which might take as little as 30 seconds to complete, before we can start comparing more than 90 asset finance providers on your behalf.
Finding the right lender
Different providers might specialise in different types of asset finance, for example some might offer hire purchase but not asset re-finance, or vice versa.
Some lenders might only consider established businesses with several years’ trading history, while others might specify a minimum level of turnover or refuse to lend if you have poor credit. Other lenders, meanwhile, might specialise in providing finance to businesses who have been rejected elsewhere.
There may be many lenders who offer the type of asset finance you are seeking – some might be familiar names, such as high street banks, while others might be less well-known niche providers.
Finding the right lender and product is much easier if you engage the services of a broker such as Funding Bay. We have access to many different providers of hire purchase, asset leasing, asset re-finance and sale and leaseback arrangements.
How long your application will take depends on the type of arrangement you are seeking, and which lenders you can approach. When you contact us, we can hopefully give you some indication of how long the process is likely to take, but some asset finance applicants are able to access funding within a matter of days.