ELS Asset Finance: Fuel Your Business Ambitions with ELS Asset Financing

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What Is Asset Finance?

Asset finance usually refers to two different parts of the financial service scope when it comes to corporate, commercial or personal financing.

On the one hand, companies can use their balance sheet assets, inventory or accounts receivable to raise finance or access lines of credit. Companies lending money have to be able to show prospective lenders that they’ll be able to service those loans, so all of these things can be taken into consideration.

Then asset finance can also mean raising lines of credit or financing for the express purpose of securing fixed assets. Typically, property, operational equipment or land.

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Why Should I Choose Asset Finance?

  • Asset finance can be a valuable resource for companies that need to raise capital spending for specific purposes, and is usually reserved for larger amounts or bigger projects but can be packaged to suit smaller, more emergent demands.
  • Asset finance is ideal for a growing business, and in times of economic uncertainty when cash flow challenges could mean a reduction in operational capacity. This kind of finance allows businesses to raise cash that can be directed towards a range of purposes and outcomes.
  • When businesses are seeking asset finance to finance the acquisition of tangible equipment and operational machinery, then this kind of finance can make the difference between businesses ability to respond to opportunity and find continual growth, or not.

How Does It Work?

Asset finance can work in a couple of different ways. This will depend on which type of asset finance you’re needing – be it, financing against existing assets or finance to acquire assets.

Hire purchase is a form of asset finance that enables companies to spread the cost of asset acquisition over a set period; the lender will retain ownership of the asset until the terms of the loan agreement have been met in full.

Asset refinance allows you to release cash into your business using your existing assets. You can also use it to consolidate debt or provide security when structuring a deal. Depending on your situation, lenders will typically lend up to 80% of your asset’s value.

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What Types Of Asset Finance Are Available?

There are generally five different types of asset finance available:

Hire Purchase

Hire Purchase or “HP” is a type of asset finance that allows the lender to purchase the asset on the behalf of the borrower. Once acquired, the borrower will make regular payments of a set period to the lender and over that period eventually gain outright ownership of the asset.

Equipment Lease

These leases are a very popular option for asset finance because of the freedom and flexibility that comes with them. In this case, the borrower enters a contractual agreement with a lender that allows for the borrower to use the equipment for the specified purpose, for the agreed period.

Operating Lease

This lease works similarly to an equipment lease only the equipment leases are normally for shorter terms whereas operating leases are typically longer, although not for the full life of the asset. This means that operating leases are usually cheaper since the asset is being borrowed for a much shorter period than with an HP or full equipment lease.

Finance Lease

This lease has all the rights and obligations of ownership and is undertaken by the borrower for the duration of the lease. The borrower holds all responsibility for the maintenance of the assets.

Asset Refinance

When an asset has been fully paid for and has been acquired in full by the borrower, then additional finance can be obtained by using the asset as security for an additional cash amount.

Benefits of Asset Finance with ELS

  • Protect Existing Credit Lines: Leverage additional credit lines without affecting your existing ones.
  • Up-to-Date Technology: Upgrade anytime to keep pace with technological advancements.
  • Fixed Payments: Easy budgeting with fixed payments throughout the lease term.
  • Improved Cash Flow: Spread the cost and ease the burden on your cash flow.
  • No Upfront Costs: Most lease agreements require no initial deposit.
  • Tax Benefits: Enjoy 100% tax-deductible payments against profits.
  • Beat Inflation: Secure the equipment at today's prices.
  • Growth: Generate income, grow your business.

Let's fund the assets you need

We offer a wide range of tailored, specialist financial solutions for businesses and we want to hear about your business or project and work together to make it a success. Call 0116 389 3839 or complete our form.

Frequently Asked Questions

LEase finance - asset finance - EQUIPMENT LEASING - HIRE PURCHASE

What is Lease Finance?

Lease Finance is a financial arrangement that allows you to acquire the equipment you need without a hefty upfront cost. Instead, the cost is spread over manageable monthly payments, freeing up your capital for other business needs.

How Does Lease Finance Work?

In a typical Lease Finance agreement, ELS purchases the asset you require and leases it to you for a predetermined period. You make monthly payments for the duration of the term, after which you have various options, including continuing the lease or purchasing the asset.

What's the Typical Length of Lease Finance?

Lease Finance agreements usually last between 2 to 6 years. However, there are special cases where the term can extend up to 7 or even 10 years. The length of the term affects both your monthly payments and the total interest payable.

Lease Finance vs. Buying Outright?

While buying outright eliminates interest costs, it also requires a significant initial investment. Lease Finance allows you to spread these costs over time, preserving your cash flow for operational expenses and potential growth opportunities.

What Types of Equipment Can I Finance?

From energy-efficient technology to office equipment, ELS offers Lease Finance solutions across a wide range of sectors. Whether you're in education, energy, or any other industry, we've got you covered.

Is Lease Finance Suitable for Start-Ups?

Absolutely. Lease Finance is often more accessible for start-ups than traditional business loans. The asset itself serves as security, reducing the lender's risk and making it a more viable financing option.

Are There Tax Benefits to Lease Finance?

Yes, Lease Finance payments can usually be deducted from company profits before calculating tax, offering you potential tax advantages.

Why Choose ELS for Lease Finance?

  • Expertise in solving complex business finance challenges
  • Quick and transparent application process
  • Competitive industry rates
  • No hidden fees or surprises
  • Tailored solutions to fit your specific needs
  • Access to a variety of financial products
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