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One of the ways you can help your business expand is by buying new equipment, investing in transport vehicles, and the like. With better equipment and other assets, you can improve your products and services and enlist more customers as well. But purchasing new equipment and machinery, among others, is easier said than done. This is especially true if you are just starting out and do not have the necessary extra cash to speak of.

However, there are some financial services that you may want to consider, and one of the most lucrative and profitable is said to be asset finance. With asset finance, your business has the opportunity to grow and expand with new investments on whatever equipment, transport, and supplies you need.

When do you need asset finance?

Asset-FinanceYou may need asset finance when you would like to invest in physical assets such as new office equipment (computers and software), vehicles such as buses, cars, and vans; machinery, construction equipment, and so on, but you do not have a large capital. A firm offering an asset finance service will then help you buy the asset you need, and you simply have to pay them in monthly increments. This way, investing in new assets for your business is easier to manage and more affordable for you as well.

Different asset finance programmes

There are basically two kinds of asset finance programmes: one is for hire purchase, and the other is for leasing. With leasing, you are simply paying to use the asset and do not have ownership of it in any way. In a leasing package, you are usually not required to give a deposit. You just pay every month for use of the asset, and the contract can run from a month to up to two years. With leasing, you do not purchase the asset yourself and will not end up owning it at any point.

With hire purchase, on the other hand, the asset is purchased for you by the asset finance firm, and you just have to pay them back with a fixed monthly payment in a number of years. At the end of this period, you will wholly own the asset. Depending on the hire purchase package, you may be asked to pay a deposit based on the value of the asset amounting to 10 to 20 percent. Whilst hire purchase can be said to be similar to a leasing package because you have monthly payments, the main difference is that you will have full ownership of the asset at the contract’s end.

Hire purchase or leasing?

Whilst both may have certain advantages, hire purchase is more advantageous to most business owners. After all, you end up owning the asset when the payment period is over. Aside from this, with hire purchase, you don’t need to get a loan from the bank or borrow from friends and family in order to have the lump sum you need to purchase your asset. Hire purchase does not require any collateral or security, either. One other good thing about hire purchase is that once you finish paying for the asset and are the owner of it, you can choose to sell it yourself. This way, you can receive some of your investment back as well.

Whichever way you look at it, asset finance packages like hire purchase offered by reputable firms like Ultimate Finance are a good way for your business to expand in no time.

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