Asset Financing

Asset Finance is one of the most preferred forms of financing for businesses worldwide.

It allows the businesses to free up their precious capital tied up in assets and equipment like business vehicles, commercial trucks, plants & machinery, IP etc. The asset finance involves using the asset as collateral for the loan. Being a secured loan, the interest rates are normally lower than other unsecured loans or general obligations. This can also be used when a business or company is looking to buy another business, franchise etc. If the company has expertise in a field and is looking to expand in another region by buying another business or franchise, it can use the asset financing to purchase those assets.

For example, Company A has got a franchise of petrol stations in Hamilton, and they are looking to buy another one in the New Plymouth region. They can finance the purchase by using their existing business as an asset.

We understand the franchise business intricately.

A lot of entrepreneurs prefer to buy in a franchise as it provides a good support system, industry knowledge and brand awareness (to support the sales) . Most of the franchises though require a good amount of initial investment in the franchise fees, equipment’s, vehicles, logos and refitting the showroom to match with the corporate guidelines. Asset Financing can be used to buy in a franchise.

Most common use of asset finance is business looking to buy equipment used in their normal course of business. For example, a construction company is looking to buy a digger which can be used in their business. They can finance a part of their purchase by using the digger as collateral.

There are a wide range of finance options available.

Payments can be structured to match the cash flows and the term can be matched to meet the useful life of the asset. The interest rates vary on the term of the loan, collateral, and the business circumstances. We would be happy to work with you to customise a solution which suits your needs.