What is asset finance and is it right for your business?

Asset finance is an easy way to spread the cost of new business purchases without tying up capital and disrupting cash flow. It is an alternative funding option to an overdraft facility or loan and can be used by any business, whether you are an established SME or a part of a larger corporation.

How does asset finance work?

A business chooses the selected asset they need for their business and the finance provider pays for this equipment outright. In turn the business makes regular payments over an agreed time period, normally between two to five years, to the asset finance provider and at the end of the agreement there is an option to purchase the asset for a small fee. 

To help with cash flow fluctuations of seasonal businesses, some lenders, including Novuna Business Finance are able to offer flexible repayment options.

Benefits of asset finance

Capital preservation

Asset finance safeguards cash flow, allowing businesses to allocate capital to other business needs.

Fixed payments

Predictable monthly payments facilitate easier budgeting and financial planning.

Tax Efficiency

Businesses may benefit from potential tax deductions.

Access to technology

Asset finance enables businesses to access cutting-edge equipment without significant upfront investments, helping to remain competitive.

Flexible financing

Asset finance offers diverse financing options tailored to businesses' needs, providing flexibility in payment terms and structures.

Risk mitigation

By leasing or financing assets, businesses mitigate the risk of asset obsolescence and can upgrade to newer models or technologies at the end of the term.

Financial stability

Asset finance preserves liquidity, allowing businesses to effectively allocate capital and navigate economic uncertainties.

Is asset finance right for your business?

Asset finance is suitable for businesses requiring assets and who would prefer to spread the cost over a set period of time. Assessing repayment capabilities, understanding agreement terms, and comparing providers are crucial steps in securing optimal financing tailored to business needs.

Why Novuna Business Finance?

As a leading financial services company, we focus on markets where we can provide innovative solutions that require high service levels and a commitment to customer care. For over 40 years, Novuna Business Finance has led the way in providing finance to enable businesses to grow and prosper. What’s more, with Novuna Business Finance, businesses can tailor monthly repayments to create a bespoke schedule that reflects your cash flow and the seasonality of your business.

Let's talk!

If you have any questions, please complete the form and a member of our Asset Finance team will be in touch shortly.

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Novuna is a trading style of Mitsubishi HC Capital UK PLC. Other brand names under which we trade include Novuna Consumer Finance, Novuna Personal Finance, Novuna Business Finance and Novuna Business Cash Flow.

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