Asset Finance for New Business
Starting a new business is an exciting venture, but it comes with its challenges, particularly when it comes to securing the right funding. One of the most effective ways to invest in essential equipment, machinery, or vehicles without straining your cashflow is through asset finance. At First Oak Capital, we specialise in helping new businesses like yours access the funding you need to grow and thrive.
What is Asset Finance?
Asset finance allows businesses to acquire or lease the assets they need to operate without having to pay the full cost upfront. Instead, you make manageable payments over time. This type of finance is particularly beneficial for new businesses that need to conserve cash while acquiring the tools and equipment necessary for day-to-day operations.
Key Benefits of Asset Finance for New Businesses
- Preserve Cashflow: Spread the cost of assets over a fixed period, keeping cash available for other priorities.
- Access to Modern Equipment: Ensure you’re using the latest technology without a large upfront investment.
- Flexible Repayment Options: Choose terms that suit your business’s cashflow and growth projections.
- Tax Advantages: In many cases, asset finance payments are tax-deductible, which can reduce your overall costs.
How Asset Finance Works
Asset finance typically comes in several forms, each designed to meet different business needs. Here’s a breakdown of the most common types:
Hire Purchase
Hire purchase enables you to spread the cost of an asset over an agreed term. Once all payments are made, ownership transfers to you. This is ideal for businesses that want to own the asset at the end of the agreement.
Leasing
Leasing allows you to use an asset for a set period while making regular payments. At the end of the term, you can often upgrade to a newer model, extend the lease, or return the asset. This option is great for businesses that need flexibility.
Finance Lease
With a finance lease, you’ll pay regular instalments to use the asset, and you’ll typically have the option to sell it at the end of the term and keep a percentage of the proceeds. This is a popular choice for assets that depreciate over time.
Operating Lease
An operating lease is a shorter-term option that’s ideal for assets with a limited useful life. You pay for the use of the asset without taking on the risks of ownership.
Why New Businesses Struggle to Secure Finance
New businesses often face difficulties when applying for finance. Traditional lenders are wary of businesses with little to no trading history, and this can make it hard to get approved. Some of the common challenges include:
- Lack of Credit History: Without a proven track record, lenders may view your business as a risk.
- Cashflow Uncertainty: Startups often have fluctuating income, making lenders hesitant to offer loans.
- Limited Collateral: New businesses may not have assets to secure funding against.
At First Oak Capital, we understand these challenges and work to find finance solutions that work for your specific circumstances.
How First Oak Capital Can Help
At First Oak Capital, we specialise in helping new businesses secure asset finance. Our team has extensive experience working with startups and small businesses, and we’re here to guide you through every step of the process. Here’s how we can help:
1. Tailored Advice
We take the time to understand your business and its unique needs. Whether you’re looking for vehicles, machinery, or IT equipment, we’ll recommend the right asset finance solution for you.
2. Access to a Wide Range of Lenders
We have relationships with a wide network of lenders, increasing your chances of approval. Even if you’ve been turned down elsewhere, we may be able to find a lender that’s willing to work with you.
3. Simplified Application Process
Finding the right lender and preparing a strong application can be time-consuming. We handle the application process on your behalf, ensuring your proposal is well-prepared and stands the best chance of approval.
4. Competitive Rates
We strive to find the most competitive rates and terms available, so you can secure the funding you need without overpaying.
5. Support Beyond Funding
Our support doesn’t stop once your finance is approved. We’re here to answer your questions and provide ongoing advice as your business grows.
Common Uses for Asset Finance
Asset finance can be used to fund a wide variety of assets, including:
- Vehicles: Cars, vans, and lorries to keep your business moving.
- Machinery: Equipment for manufacturing, construction, or agriculture.
- IT and Technology: Computers, servers, and other tech essentials.
- Furniture and Fixtures: Office furniture and retail fittings to create the right environment for your business.
No matter what your business needs, asset finance can provide a cost-effective solution.
Steps to Secure Asset Finance for Your New Business
If you’re ready to explore asset finance, here’s how to get started:
1. Identify Your Needs
Determine what assets your business requires and how they’ll contribute to your growth. This will help you choose the right type of finance.
2. Prepare Your Business Plan
A strong business plan demonstrates your business’s potential and helps lenders see the value in supporting you. Include details about your goals, financial projections, and how the asset will be used.
3. Work with a Broker
Navigating the finance landscape on your own can be overwhelming. By working with a broker like First Oak Capital, you can save time and increase your chances of finding the right deal.
4. Submit Your Application
We’ll handle your application, ensuring it includes all the necessary information to give you the best chance of approval.
5. Review and Accept Terms
Once approved, carefully review the terms of the agreement to ensure they align with your needs. We’ll be on hand to answer any questions.
The First Oak Capital Difference
Choosing the right partner can make all the difference when securing asset finance for your new business. At First Oak Capital, we pride ourselves on our expertise, personalised service, and commitment to helping your business succeed. Here’s what sets us apart:
- Specialist Knowledge: We have extensive experience in the asset finance market.
- Customer-Centric Approach: We put your business’s needs first, offering honest advice and practical solutions.
- Wide Lender Network: Access to a broad range of lenders increases your chances of approval.
- Proven Success: We’ve helped countless businesses secure funding, even in challenging circumstances.
Get Started Today
Securing asset finance for your new business doesn’t have to be difficult. Let First Oak Capital take the stress out of the process. Call us today or complete the form on our website to discuss your needs and get a quote. With our help, you can focus on what matters most: growing your business.