Purchasing the right equipment is essential to business expansion, but paying for it all at once will be costly to your cash flow. Asset finance opportunities provide an answer that will enable you to purchase the equipment, vehicles, or machinery you need without having to pay for everything upfront. This gives your business more flexibility and smarter financial control, with terms that can be adjusted to fit your needs.
Suppose you are a startup, small enterprise, or any company looking to expand or grow your business. In that case, asset-based funding can answer the growth prospects you have been eagerly anticipating. Whether it is equipment financing, auto financing loans, or anything in between, numerous solutions enable you to maintain a smooth operation in your business without draining your pockets. Let us learn more about it and discover why it may be the perfect choice for you.
What is asset finance?
In simple terms, it is the way of purchasing assets like cars, machinery, or equipment without paying the full amount upfront. Companies can choose to opt for a finance agreement instead, where they pay in instalments over time but are still able to utilise the asset. This means that businesses get to keep working effectively while still having good cash flow.
The popular asset financing options are
• Hire Purchase: A way to pay for an asset over time, with the chance to buy it outright when the term ends.
• Leasing: Leasing means renting equipment or assets for a set time, with the option to buy them later if it suits your business.
• Chattel Mortgage: A type of secured loan that uses the asset as collateral, which can lead to lower interest rates.
These options help businesses get assets without using up their cash, making it easier to grow and succeed.
How Strategic Asset-Based Funding Can Revolutionise Your Business
Financing assets offers numerous advantages to companies, from fledgling startups to established corporations. Below is the list of advantages that make it wise:
1. Improved Cash Flow Control
Asset financing’s key advantage lies in safeguarding your working capital. By spreading payments over time, you avoid locking up big sums in equipment, vehicles, or real estate. This flexibility helps you manage your money more, keeping more funds available for other company needs.
2. Picking Your Financing Path
You’ve got options when it comes to funding your business needs. Need new machines, a fleet of cars, or tech for the office? There’s a way to pay for it that works for you. From renting cars to equipment financing, there are options for businesses that suit their circumstances. This allows you to select the most suitable arrangement depending on your funds flow, what you are purchasing, and how long you will be having it.
3. Tax Benefits
Business asset funding can offer possible tax savings. Based on your business setup and the type of asset you are financing, you may be eligible to claim tax deductions on your repayments. This can reduce your tax charge, so it is an economic choice for most businesses.
4. Instant Access to Assets
Acquiring financing for your property is typically quicker than bank loans. When you are approved, you can utilise the asset immediately, and this can be vital to keeping your business operating smoothly.
Types of financing options available for assets
There are various funding options available for purchasing business assets, and the most suitable for your business will depend on your needs. The main categories are as follows:
1. Equipment Finance
If your company depends on specialised equipment, office equipment, or technology, equipment finance may be the best choice. It enables businesses to purchase equipment required for business activities without investing a lot of money upfront. This asset financing suits businesses like manufacturing, information technology, and construction firms, where equipment is a prominent part of the business process.
2. Vehicle Financing
For companies that need cars for delivery, transport, or other purposes, an auto finance loan is a great option. From trucks to cars to vans, car financing gives you the freedom to purchase vehicles without dipping into your cash reserves. This can be particularly helpful for delivery-based companies that must have a fleet of cars to keep running.
3. Commercial Asset Financing
Where large-scale purchases such as commercial property, machines, or industrial plants are involved, commercial asset finance is the best option. Commercial asset finance lets businesses get the equipment or vehicles they need without the pressure of large upfront costs. Commercial asset finance is extended at a lower rate of interest because it is supported by valuable assets.
4. Unsecured Business Loans against Assets
If your company does not have large assets to give as collateral, a secured business loan is impossible, and an unsecured business loan is a suitable alternative for companies to obtain needed resources. Even though unsecured loans carry a higher rate of interest, companies can still obtain the needed equipment or machinery without providing collateral.
5. Secured Business Loans
A secured business loan means you offer something valuable, like property or equipment, as collateral to back the loan. Secured business loans could be a smart choice if your business owns assets like property, equipment, or vehicles. As the collateral acts as an added security, it offers lower interest rates and loan terms.
How to Apply for Asset Finance in Australia
Obtaining funding to purchase your business equipment requires a series of steps. Here’s the breakdown of the steps involved:
1. Define Your Needs
Before you arrive at asset financing, take a seat and determine what you require. Are you looking to purchase new office equipment, vehicles, or specialised tools? What you need will help you choose the right funding product for your business.
2. Have Your Financial Papers Ready
They will ask for items like business plans, financial statements, and cash flow projections to assess your potential to repay the loan. Make sure that all your financial records are current and ready to be submitted.
3. Compare Your Options
There are many finance options to choose from, so compare them. Whether you use secured business loans or equipment financing, be sure to choose the option that best suits your business’s financial needs and asset requirements.
4. Submit Your Application
After selecting the loan option that fits your business needs, go ahead and submit your application with all the required documents. Double-check everything for accuracy to keep the process smooth and avoid any unnecessary setbacks.
5. Approval and Acquisition of Assets
Once your loan is sanctioned, the lender will disburse the amount, and you can use that to purchase the asset and make use of it right away. The terms of repayment will be outlined in the contract, so please go through them carefully.
Why Probiz Finance for Your Business Funding Needs?
At Probiz Finance, we recognise how difficult it can be to identify and finance key business assets. We have experts to assist you in determining what is out there and selecting the most suitable solution for your business.
Expert Opinion: We offer expert opinion to assist you in finding the appropriate financing for your business requirements.
Streamlined and Efficient Process: We provide quick approval and a simple application process to enable you to buy the assets you want quickly.
Flexible Terms: Variable terms for our financing to align with your company’s cash flow.
Conclusion: Ready to make a smarter financial move?
Auto finance loans and other forms of asset financing offer businesses the opportunity to obtain the assets they need without depleting cash reserves. Repayment flexibility, tax advantages, and rapid asset access make it an attractive choice for businesses seeking to expand without the outlay of money. If you are prepared to proceed with obtaining the financing you require for business assets, contact Probiz Finance today.
Ready to use asset finance for your business growth? We can assist you in obtaining the most effective financing solutions for your requirements.
Disclaimer: Probiz Finance ABN 52 661 057 647 | Credit Representative Number 542838 is authorised under Australian Credit Licence No 384704. Your full financial situation and requirements need to be considered before any offer and acceptance of a loan product