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Asset Finance Company

An asset finance company allows entities to collect funds for buying assets they may need to run their businesses successfully. Sometimes, paying a lump sum amount of cash at once for purchase of assets can be difficult to handle. Moreover, it may considerably affect the firm’s operating capital. With asset finance, however, one can get the capital to purchase assets, and the money can be repaid to the finance company by way of regular payments within an agreed timeframe.

Asset finances can be used for buying new or used cars, office equipment, buses, and plant machinery, among other items. With the assistance of an asset finance company, you can purchase equipment for your trade without having to spend a huge sum at once. Thus, it saves you from the dilemma of putting together a large sum of money to buy necessary assets.

Hire purchase credit facilities are available where the lender allows the borrower the right to own and use assets in return for regular payments. Here, the borrower first identifies the asset he or she needs, and negotiates the price with the financier. After the lender has paid a 10 to 20% deposit, he or she can take possession of the asset directly from the supplier. After the full payment has been made at the end of the period, the title of the goods can then be transferred to the borrower.

Lease purchase on the other hand is usually confused for a regular lease. However, it has similarities with hire purchase, with the difference being only that in a Lease Purchase, the borrower needs to pay a deposit of 10 to 15% as a multiple of the repayments. Payment for the balance and interest is then spread as installments. In addition, a Lease Purchase is based on a fixed or a variable charge.

In Contract Hire, a contract is entered into between the dealer and the client. Here, the client rents the asset for a given period of time, and after the lapse of the period, he or she returns the asset to the dealer. With this option, the client will have a chance of using the new asset without the dangers related to owning the asset.

Therefore, it is evident that there are various options for asset finance, with various entities providing the services in different forms.

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fendi outlet said:

In addition, a Lease Purchase is based on a fixed or a variable charge.

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