This article outlines both the real benefits of asset finance as well as the many additional considerations that must be made in order to make an informed financial decision about acquiring assets.

Most businesses need to use a variety of assets in order to provide a service or manufacture a product for their customers.

Assets range from equipment assets like computer systems, photocopiers, office furniture, restaurant equipment, plant, machinery to vehicle assets like commercial vehicles, company cars, forklift trucks and buses.

Paying for assets outright with cash can place a strain on the working capital position of a business. It can also reduce the future opportunities a business has to raise funds for growth.

Asset Financing is about the alternative financial methods that can be used to acquire or rent business assets without using up valuable working capital.

Also worth noting is that some businesses acquire assets without being fully aware of the impact the financing method they choose has on their cash-flow, tax and VAT liability, credit status, bank exposure (especially during times of lean trading) and available funds for growth.