Are You Eligible For Asset Finance?

Thinking of purchasing a vehicle for your business? You could be eligible for asset finance.

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Asset-based finance is a fundamental factor in the success of modern day businesses as it allows the opportunity to conserve capital whilst still investing in assets you need. More specifically, vehicle finance can be useful within a range of different industries, spanning from helping logistic companies to expand their fleet to aiding small businesses with their day to day running’s.

There are a range of different finance packages available, and each one can be tailored to suit your requirements perfectly. If you would like to know more about the finance arrangements, this could be a useful tool for you.

You may still be wondering…

How do I know if I am eligible for asset finance?

First of all, there is a lot of criteria that you have to meet in order to prove to the lender that you are not much of a risk.  However, if you operate a business that has been running for three or more years and have been generating a healthy profit with positive trends then you are most likely to be approved for finance by the lender. However, this is not set in concrete.

What exactly is the criteria that my business has to meet?

You have to be able to provide answers and evidence of these:

  • Industry particulars (what exactly does your business do?)
  •  Business figures (how many clients do you have and what is your turnover?)
  • Asset particulars (what assets do you have already? Do you have any other assets on finance? What is the proposed use for the new asset and how often you expect to use it?)
  • Your expectations (what is your expected term time, initial deposit and preferable monthly payment amount?)
  • Financial health (is your business running at a loss, breaking even or generating a profit? What is your company performance history? You show this through the last three months of company accounts and your bank statements. You will also be asked whether you think your financial situation will change.)

Often at the start of the process brokers will ask for details regarding your business during the initial phone call. It is best not to feel overwhelmed by all of the questions, after all brokers ultimately just wish to save you time and to be as transparent as possible. On completion of these questions brokers will often tell you if they believe you are eligible or not.  

What are the common reasons that people are not accepted for finance?

  • Unsupportive financials
  • There is substantial outstanding credit to pay off
  • Low credit rating or no credit history
  • If you have been declared bankrupt before
  • You are not on the voters roll, linked to personal searches

What if I am a new business just starting out?

If you’re a start-up or new business, you’ll want to be able to buy the assets needed to operate successfully. Asset finance helps by reducing the up-front costs and breaking down purchases into affordable monthly repayments. Most start-ups will use this as it aids cashflow.

What if I am operating at a loss at the moment but am asset rich?

If this is the case then we can still help you! For instance, you can refinance an asset to unlock its capital so that you can free up your cashflow, or you can use it to invest in a new company vehicle.

Have we answered all of your questions? We always aspire to answer any questions that you may have, if there is anything that we have left out please feel free to contact our team on 01603 733500 or email, Chatsbrook would love to know your thoughts!

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