Asset Re-Finance

Asset Re-Finance Explained

Helpful advice on refinance and brokerage makes a very important aspect our business. Asset finance is basically an agreement between the company leasing the asset and the owner who owns the asset. The asset is spotted, valued and funded to dependant on valuation levels and equity, A lease agreement or asset refinance is setup with regular payments to the company that leases the asset for an decided amount over a fixed period of time.

Business that have many assets choose the option of asset refinance as it allows their businesses to access cash flow that is tied up in form of owned assets. The payments towards asset refinance are classified as expenses and thus they offer clear benefits in tax.

Advantages Of Opting For Asset Refinance

The major benefits of choosing the option of asset refinance are:

  • It is a simple and very cost effective way to release finances from assets that already exists in balance sheets
  • It is a swifter way of getting cash when you need it in emergency or as a easy way of expanding funds
  • It allows businesses to continue using the assets without any halt
  • It is a flexible option to fetch finance
  • The agreements of asset refinance can be paid on a weekly, monthly or even quarterly basis to fit into your pursuit
  • Asset refinance agreements usually have a set or fixed interest rate
  • The cost of payments towards asset refinance are taken as Profit or Loss items to be appearing in the balance sheet
  • The payments towards asset refinance are considered as expenses and not as a debt. Thus, it does not affects the credit ratings of the businesses
  • Asset refinance is capable of providing much needed cash when your business needs it most
  • Most of financial advisors favour the option of asset refinance to evade heavy depreciation allowances.

Disadvantages Of Opting For Asset Refinance

  • Borrowers normally end up paying more than asset’s original price
  • The contracts for asset refinance are often rigid that are set over fixed terms
  • The rates of interest are also generally fixed
  • It often also need personal guarantees from the owners of the businesses or company directors to secure asset refinances

Kinds Of Assets That Can Be Accepted For Refinance

  • Technology
  • Machinery
  • Property

We are your trusted experts in the industry of asset refinance. We can help you select most suitable arrangement that would benefit both – the lender as well as the borrower. You can contact us to get a free quote on asset finance from us.