The term ‘asset finance’ refers to a business loan to acquire machinery or other assets that are connected to a business expansion plan, and this loan could be for a duration of 6 months to 3 years. This is often required when a small business reaches a point where it needs additional resources in order to maintain growth, and there are online lenders who can tailor a business expansion loan to suit the client.
How Does the Online Lender Differ from the Bank?
This is a question often asked by business owners, and while the bank would require some form of security, the online lender has associations with many finance providers and can usually facilitate an expansion loan solely based on future orders. This would not be possible with a traditional lender such as a bank, who require some form of tangible security, even if the business has been doing well from day one, but with asset finance from a leading Australian online lender, you can get that vital cash injection exactly when you need it.
Types of Asset Finance
There are several forms of asset finance, such as:
- Finance Lease – Where the assets or equipment are leased by the borrower and remain the property of the lender.
- Operating Lease – This type of loan requires the lender to be responsible for the maintenance of the asset or equipment.
- Tech Rental – Rather than purchasing the tech equipment you need, you can rent it from the lender.
- Hire Purchase – A straightforward purchase agreement that ends with the borrower owning the assets or equipment.
- Business Vehicle Leasing – If you need a fleet of vehicles, there are commercial vehicle leasing packages, and with a range of payment plans, you can choose the one that best meets your needs.
In many cases, the borrower does not have adequate assets to secure a business expansion loan, and while a bank would likely refuse such a proposition, the online lender takes each application on merit and if the company is doing well, they would likely provide the necessary capital for the expansion.
If you require additional funding for your expanding business and have tried unsuccessfully to secure a loan from your bank, get in touch with a leading Australian online lender, who should be able to provide you with a loan that meets your goals. This will enable you to continue to grow and with affordable repayments, you can spread the cost over a suitable period of time.