In August 2007 the signs of what has now become know as the “credit crunch” first appeared. Since then lending to the small and medium business market place has been more and more difficult to obtain.
Where funding has been agreed it has been at higher rates, with higher fees and more and more terms and conditions attached. For businesses needing to acquire equipment & vehicles, asset finance is the perfect solution.
The Advantages of Finance
- Bank credit lines remain unaffected – leaving them available for use elsewhere
- Fixed repayments, easier to budget and manage cash flow
- 100% of the project can be funded with a minimum initial rental normally required
- Can be 100% allowable against tax
- When the facility is there it can not be taken away like an overdraft (provided the terms of the agreement are maintained throughout)
- Allows the buyer to upgrade their purchase resulting in increased purchase power
- In most instances secured against the asset funded
The expression “CASH IS KING” has never been more relevant!