Do you have a new project on the go and need more machinery to execute it well? Perhaps you have a bad credit record and cannot obtain loans through the normal financial channels. What do you do? What you should do is to go to an asset finance company and ask for machinery finance, and they will give it to you without asking too many questions. Track or credit records do not matter, and you will get the finance you want within a day or two.
All you need to do is to agree to pay the loan with interest within a particular period of time, without defaulting on payment during the duration of the loan. Most businesses big and small engaged in productivity and relying on orders from clients will require cash from time to time when they acquire new orders and need to expand the existing resources or find new resources. Asset finance can also be used to refinance existing machinery and give you better cash flow. Machinery Finance is available for various purposes such as construction, recycling, agricultural, engineering, material handling, printing machinery and other machinery and if you are involved in any of these businesses, then asset finance can open the doors for you when others are shut.
A Finance Lease is another loan instrument which is asset based, and is where the owner agrees to pay rent on the machinery or asset which is funded by the financial institution or lender for a particular period of time. During this period of time the borrower uses the machinery or asset and in return for this they will pay rent in return. The return of loan is usually based on the revenue earning cycle of the borrower hence, it is more affordable for them to pay rent. A borrower at the end of the lease agreement can either renew the lease and continue using the machines for an extended period under a second agreement or simply return the asset back the lender.
Lease financing is very useful for new business owners as they don’t need to invest in machinery, vehicles or any other asset using their own money. Lease finance is a better option as it does not require anything from the borrower and the lease finance companies offer agreeable terms such as fixing rent amounts and the payment schedule according to the money generation cycle of the borrower. This allows the borrower to breathe easy because they know that they will be in a position to pay the rent.