Asset financing is a comprehensive term that refers to the funding of assets or equipment in exchange for monthly payments over a predetermined period of time. Spreading the cost of investment, lowering demands on scarce money, and reducing the cash flow effect of acquiring outright are all significant advantages.
Find all that you need to know about the Best Asset Finance Companies in this review.
Table of Content
- 1 Best Asset Finance Companies 2021
- 2 ALG Finance
- 3 Lombard
- 4 Capalona
- 5 What is an Asset Finance Company?
- 6 How to Choose the Best Asset Finance Company
- 7 How Does an Asset Finance Company Make Money?
- 8 When to Contact Asset Finance Companies
- 9 Asset Finance Companies to Avoid
- 10 Full List Of Asset Finance Companies
Best Asset Finance Companies 2021
From our research, here is a list of the best asset finance companies December 2023:
Asset Finance Company are our #1 choice for the best asset finance companies in the UK, as this nationwide brand delivers financial services of the highest quality to its clients.
Being in the industry for a long period of time, Asset Finance Company have the experience and know-how to provide the best asset finance services for both big and small businesses.
You can find out more about Asset Finance Company by clicking the link to their website above, or, read our review of the company to learn more about what they can do for you.
Strategic Business Finance are our 2nd pick for best asset finance company in the UK, working with companies of all sizes and backgrounds to provide excellent business finance services.
Again, just like Asset Finance Company, Strategic Business Finance are a nationwide business, so no matter where you’re located in the country, Strategic Business Finance can help.
If you’re interested to learn more about what this company can do for you, you can find their website by clicking above, or you can read our review today.
ALG Finance come in at number 3 for our best asset finance companies in the UK, as again these guys are a reputable and well-respected brand within the industry.
ALG are based in Stockport, Cheshire, and are an independent company that first opened their doors back in 2000.
If you’d like to know more about who ALG are and what they can offer, you can find our in-depth review of the organisation on our website.
Lombard are another example of a great asset finance company, working with businesses of all sizes to offer reliable financial solutions.
Lombard themselves have been working within the industry for what seems like forever, making them a knowledgeable and safe organisation to work with.
For more on who Lombard are and what it is they can do for you, we’ve created this review to help you learn more about their services.
Capalona also makes it into our top 5 asset finance companies based in the United Kingdom, as this well-reviewed business provides great financial solutions for businesses of all sizes.
Capolona have been operating since 2014, and since that time have built their reputation as a leading asset finance business based in the UK.
You can find out more about Capalona and the services they provide by taking a look at the review we created on our site.
What is an Asset Finance Company?
Asset Finance providers are financial firms whose primary business is to finance physical assets that are associated with productive/economic activity, such as machinery, automobiles, tractors, material handling equipment, and power generators.
Asset finance is a sort of financing that allows you to get your hands on company assets like business equipment, machinery, and automobiles without having to pay for them upfront. It can also help you get cash out of the value of your current assets or utilise your assets as collateral for business loans or company loans from an asset finance lender.
Businesses who want to put their expansion plans into action but don’t have the funds on hand, or business owners who would prefer to spread hefty expenditures over a longer time, may find business asset finance appealing.
How to Choose the Best Asset Finance Company
Make sure you understand what type of asset financing you require so that you can gather all of the necessary information for a successful application.
While asset finance is considered to be safer owing to the inherited security of the item being funded, it is still necessary to show all of your finances accurately when applying.
Determine precisely what your company need.
The sort of financing you choose will be determined by your company’s needs, including whether it’s a start-up, expanding, or needing to free up capital. Invoice financing, bridge financing, merchant cash advances, bank loans, and asset financing are all possibilities.
Take a look at a few other asset providers.
While some lenders may be able to give numerous types of business equipment, others may only be able to provide specialised machines. Always conduct your research, evaluating and comparing what each service has to offer.
Give as much information as you can.
Business loans requirements, particularly for asset lending, have become more stringent. Make careful to enter any additional information that may be necessary (in addition to the standard asset financing checkboxes), such as:
- Information about the business
- Information about the industry
- Financial data, such as customers and turnover
- Information on the asset
- Proposed asset utilisation
- Expectations for the future
- Expectations for payment
- Financial well-being
- Bank statements from the recent past
- Past performance of the company
- Information on current financing arrangements
- Forecasts based on asset financing success.
Look at the fine print.
Asset financing, like any other financial deal, has a lot of fine print—financial items like being encased in thick layers of language. Always ask questions to ensure that you understand exactly what you’re signing.
Because of omissions on your application, lenders are significantly less likely to approve your application if they have to second-guess your appropriateness and creditworthiness.
How Does an Asset Finance Company Make Money?
Asset finance providers offer service that is suitable for all types of businesses, including small and medium-sized enterprises. It’s intended for folks who want to get a high-value item to help their business expand while spreading the expense throughout the item’s useful life. Limited firms and partnerships, single traders, and public limited companies are all eligible for asset financing.
Depending on the form of asset financing you choose, asset financing operates in a few different ways. Hirebuy works by allowing you to stretch the cost of an asset over a certain period of time. The support is yours to retain once you’ve paid the lender in full.
In contrast, equipment leasing involves the lender purchasing the item, and you pay a monthly charge to rent it. You can choose to prolong the lease, pay the balance to buy it, upgrade to a new model, or return the asset to the lender at the end of the term.
When to Contact Asset Finance Companies
If your company needs financing or wants to expand, the uncertainty surrounding the EU, interest rate hikes, and rumours of another slump may be deterring you. Regardless of the overall economic scenario, many firms continue to rely on foreign capital.
Most people will go to their bank first, but there are a number of reasons why they shouldn’t: lengthy application processes, conservative lending policies, and high-interest rates are just a few of them.
To Save Cash.
Asset leasing, also known as rental leasing, means that you only pay for the asset’s value throughout its useful life. You don’t have to pay a premium upfront for your new machinery or technology, so you can start reaping the benefits right now.
To Maintain Financial Control.
Commercial asset financing helps you to keep tabs on your monthly spending and keep track of your expenses.
Risk Management Built-In.
Asset leasing eliminates the danger of their becoming obsolete in the IT industry, which has fast-moving technical needs. As a result, you were able to modernise and respond to your business environment more quickly.
In order to make quick decisions.
Asset finance transactions may be completed rapidly, allowing you to choose what best suits your organisation and move forward with slight delay. Acceptance is always more straightforward when assets are coupled with security.
Savings on Taxes.
Commercial asset finance might assist you in lowering your tax cost. For corporate tax purposes, all lease payments are classified as costs and are entirely deducted from earnings.
You Require Working Capital.
Because the equipment isn’t paid for in one large amount, any cash reserves are kept and maintained, allowing funds to be used for expansion or other possibilities.
You are a risk-averse person.
Because business is unpredictable, if you fail on your asset finance arrangement, you will only lose the asset and will not be personally responsible or put your house in danger.
Asset Finance Companies to Avoid
How can customers recognise a phoney asset recovery firm? If a corporation asks for an advance charge, according to the Consumer Financial Protection Bureau, this is a red sign. Payment in advance requests should trigger red flags. Most reputable businesses do not charge a fee until services are provided.
- Uses aggressive, quick-response strategies. When making a financial decision, you have the right to take your time and seek advice as a consumer. If the firm does not provide you that time, you should be concerned
- Claims to have access to confidential information. Be careful of any company that claims to have insider information or government connections and will help you retrieve your stolen stuff. Because it is free to file a complaint with a federal agency, any firm that claims to have unique access or ties is most certainly lying.
- Requires secrecy. If the firm prohibits you from getting assistance or advice from friends, family, or legal advisers, it is most likely trying to trick you into paying for a worthless service.
Full List Of Asset Finance Companies
We have compiled a list of Asset Finance Companies below: