If you are looking to upgrade some of the facilities in your business an option could be for you to use Soft Asset finance as a solution.
Soft Asset finance is a low risk lending mechanism due to the fact it is funded against the value of the equipment or software you are purchasing. The main ways companies would look to finance this would be through a finance lease or a hire purchase agreement, this is an effective way for a business to purchase the following
- IT Equipment
- IT Software and any Hardware required (e.g. Transport or warehouse management Systems)
- Improving or purchasing a new server
- Improving the Telecommunications
- New furniture
Finance Lease & Hire Purchase
With a Finance Lease, the equipment you require hired to your business to you via the finance company and remains their property. Monthly payments and interest rates are fixed for the duration of the contract – and although you do not own the equipment, you may receive a proportion of any value when the assets are sold at the end of the agreement. You can also make arrangements to purchase the goods at end of the lease.
Hire purchase also known as HP is a way of borrowing money to fund assets. It is different from other types of borrowing because you don’t own the goods until you have paid in full. Under an HP agreement, you hire the goods and then pay an agreed amount by instalments.