Unlocking hidden value through asset finance

Asset finance is used to purchase new equipment, upgrade existing machinery or acquire new (or second-hand) vehicles.

Through either hire purchase or lease agreements, businesses can invest in new resources and pay this back through fixed monthly instalments over a fixed period.

With hire purchase, the asset is the business’ at the end of the term (after paying an ‘option to purchase’ fee). With leasing, there are two options: either enter a secondary rental period at the end of the term or return the asset to the finance company to be sold to a third party.

Asset refinance is a way to raise working capital by using the assets the business already has and unlocking the value of them (whilst still being able to use them), and it’s possible to do this whether the assets are owned outright or are currently being financed.

There are no restrictions on what the funds raised through asset refinance can enable a business to do. Asset refinance can also be used as a tool to consolidate debts. This can often reduce the monthly outgoings as well as any surplus equity to provide an injection of working capital.

Praetura Asset Finance are hard asset funding specialists with funding solutions from £10,000 to £5 million. We pride ourselves on developing close working partnerships with introducers to support UK SMEs and provide a personalised service by meeting directly with clients to gain a clear understanding of their business and ambitions.