There are many options available for your business to secure finance against a wide range of assets and with various financing options, the most appropriate for you will depend on your business sector and of course your own individual circumstances and requirements.
At Coreco we work with specialist providers to ensure you receive the best advice where initial decisions can be made within 24 hours.
It is also important to remember that asset finance is a fixed term contract that cannot be withdrawn over the contract length – a bank can call in an overdraft at any time!
Typical assets include:
- Commercial vehicles and cars
- Buses and coaches
- Business and technology
- Plant and machinery
- Aviation, Marine and Agriculture
Potential Financing Options
This lets you spread the cost of purchase over an agreed period, at the end of which you own the asset. This option is well suited to assets with good value retention and a long asset life. This option is also known as lease purchase.
Rather than set up an agreement which ultimately provides you with ownership of the asset here fixed payments are agreed based on the vehicle requirements and expected mileage, at the end of the agreed term the vehicle is simply handed back. While the vehicle isn’t owned this option will usually mean both lower deposit levels and monthly repayments than those associated with hire/lease purchase.
The asset required is rented and monthly payments on the value of the asset over the period it is required. As a result the revenue generated by the asset can be directly linked to the rental payments made. This option can be helpful if you need a particular asset to support a specific contract or for high value specialised equipment.
Again here the asset is rented than bought, with repayments calculated over an agreed term. While the asset isn’t owned you are usually able to benefit from an element (if not the majority) of the sale proceeds at the end of the term when the asset is sold.
Aviation and Marine Mortgages
Similar to the standard mortgage we are familiar with that is secured against property, in this instance the security is taken over the aircraft or yacht itself.
Sale and Leaseback
Buying an asset outright ties up the capital used completely, keeping valuable funds locked away from other potential uses – selling it and leasing it back enables your business to benefit not only from the funds released but also from fixed monthly payments and in some instances maintenance of the asset can also be included within the monthly repayment. This option puts what could be essential cash back into your business, strengthens your balance sheet and offers tax benefits as lease payments can be offset against taxable income.
Please note that with all the above options security may be required and fees may apply.
Business such as residential and buy to let mortgages in the UK are provided through Coreco Partners LLP, other business such as overseas mortgages and commercial mortgages are provided through Coreco Specialist Finance Limited and are not regulated by the Financial Conduct Authority.
Coreco Specialist Finance Limited. Registered office: 117-119 Houndsditch, London EC3A 7BT. Registered in England, Number: 06851546