Asset finance is an alternative form of finance used by businesses to obtain the equipment they need to grow. Close Brothers Asset Finance will be exhibiting at Southern Manufacturing 2020, offering specialist advice to manufacturing firms looking to invest in new machinery. The firm provides a range of options. For example, hire purchase (HP) that allows the customer to buy the equipment on credit. The finance company purchases the asset on behalf of the customer and owns the asset until the final instalment is paid, at which point the customer is given the option to buy it. Other options include refinancing (capital release) is where the finance company purchases the asset and finances it back to the client. Repayments are calculated in line with the income stream that will be generated by the asset; at the end of the refinance term, the client owns the asset; Finance lease is where the full value of the equipment is repaid to the finance company, plus interest, over the lease period and finally, an operating lease, which allows a client to rent the asset while it is needed.
Asset finance makes the otherwise un-affordable affordable because it gives businesses access to the machinery and equipment they need without incurring the cash flow disadvantage of an outright purchase.
Visit Close Brothers Asset Finance on stand E255.