Asset Finance allows you to borrow against assets owned by the business.
Leasing arrangements are essentially rental agreements with the finance company. However, it may not be for the full amount that the equipment costs.
This works in two ways; the lender either buys an asset from you and you rent it back or you borrow against your asset but are still allowed to use it.
The pros of Assets Finance are:
- It is quick
- Does not involve outside investors
The con of Asset Finance is:
- The amounts are likely to be small for a small business