UK ASSET FINANCE FAQ

What is asset finance?

Asset finance allows funding to be secured against business assets such as debtors, stock, machinery and property.

Who is asset finance available to?

Asset finance is only available to established businesses. This is because asset finance is secured against existing assets, positive trading and a £1 million turnover.

What are the benefits of asset finance?

There are many benefits to asset finance, specific benefits are dependent upon each individual situation.

Benefits which can be gained from asset finance include the:

unlocking of cash which has been invested in the business infrastructure

taking advantage of sales growth immediately

unlocking of stock and machinery value

utilising of property value without sacrificing ownership

What is cash flow?

Cash flow is the process of ensuring that cash comes (flows) into the business at the right times, which ensures that cash can also flow out of the business at the right times too.

Why is cash flow so important?

Sound cash flow management is vital to the well-being of any business.

What is lease finance?

A lease is the process by which an asset (cars, equipment, property, etc) is rented by a business for a specific amount of time. The time period of a lease can be anything between one day and numerous years. In a lease, the asset is rented by an initial deposit and subsequent rental payments for the duration of the lease. At the end of the lease, the asset is returned to the leasing company.

What is a business loan?

A business loan is a form of finance used for a variety of reasons, including:

starting a new business

purchasing an existing business

refinancing an existing business

What is the difference between a business loan and a personal loan?

A business loan works in exactly the same way as a personal loan in that you borrow a set amount of money which is repaid over a set timescale at an agreed rate of interest. The only difference is that it is the business doing the borrowing, not the individual.

What is the benefit of a business loan over other business funding types?

Whether it is to alleviate cash flow problems or fund future activity, a loan can provide a business with instant funding.

What is a commercial property loan?

A commercial property loan is, as the name suggests, a loan which facilitates the purchase of commercial property.

What is the attractive of commercial property loans?

Commercial property loans are attractive because they enable a business to own commercial property, meaning that they are investing in the long-term future of the business.

UK Business Finance, sponsored by UKCashflow24

This guide to UK Business Finance is sponsored by UKCashflow24.

UKCashlfow24 are one of the UK's leading business finance companies.

Whatever your trading status, UKCashflow24 can offer you a host of business finance options including business loans, factoring, invoice discounting, lease finance, commercial property loans and asset finance.

Regardless of the circumstances of your business, UKCashflow24 will explore all avenues to provide you with the best business finance solution.