As is often said in business, opportunity waits for no man. If asset finance is required to buy the equipment necessary to take a company to the next level, it often needed to happen yesterday. For many companies, taking on more debt to ensure the expansion of their business, while maintaining enough working capital to pay all the bills at the end of the month, can be problematic. But it certainly does not need to be.
Why asset finance?
Asset financing is a more flexible borrowing solution compared to traditional bank loans, especially for small businesses. Because a company is financing an asset, and not just borrowing money, the process can be considerably less time-intensive than having to secure a loan from a bank. There are no business plans to draw up, nor future growth prediction proposals to hand in. Furthermore, asset finance leaves open additional credit lines for companies to explore, while there are also certain tax benefits that can be claimed over the term of the agreement.
Asking the right questions
If done through a reputable asset finance solution provider small business loans are much easier to manage and often come with flexible repayment plans. There are no two businesses that are the same, so the asset finance solution provider’s offer to small enterprises cannot be one-size-fits-all. Instead, it’s up to the asset financier to work closely with companies to find a bespoke solution to fit their needs. By doing so, payment plans typically stretching from 12 to 60 months can be arranged.
Another requirement to look at, is how well versed a prospective asset finance provider is in the industry your company plays in? Do they understand your sector, whether retail, energy, printing, medical, technology and manufacturing?
As anyone who has owned their own business can attest to, time is money. Does the asset financier require you to come to their office for a meeting first, or can the process to secure a flexible asset finance solution be initiated online?
Keep in mind that in order to secure asset finance, there are basic criteria to be met. Certain companies have strict requirements regarding how long a business must be in existence, others are more flexible in their approach, requiring as little as a minimum trading period of one year. There can be interesting exceptions to this, with some solution providers allowing medical professionals starting out in private practice to be immediately eligible to apply.
A workable solution
Asset finance can be just what a company needs to ensure day-to-day operations are maintained while at the same guaranteeing future growth by securing much-needed assets. Retail Capital has been providing South African small to medium-sized businesses with asset finance since 2011, disbursing R3-billion to date. Small businesses looking to apply for a turnkey asset finance solution can do so by visiting their website.