Asset finance relates to lending products which are used to purchase physical assets. This includes machinery, equipment, vehicles, and commercial property. In many cases, the asset you’re purchasing could be used as collateral for the loan – which is referred to as a ‘secured loan’. With this arrangement, the lender provides cash to finance the asset purchase, and you’re require to pay back the lender, with interest. However, if you default on your loan, then the lender may have the ability to seize the asset.
When it comes to equipment financing, there are various kinds of loan arrangements which you can organise with your lender. These include a Hire-Purchase agreement, or a Lease Agreement. Speak to the team at Valiant today to get a better idea of which loan product is suitable for your small business.