Close Asset Finance  

Close asset finance provides a solution for funding to assist the purchasing of new equipment. This can be done without using the working capital which will allow the business to thrive and develop. Close Asset Finance was first established in 1987 and has since grown into a leading fund supplier in the financial industry.  

There are two types of agreements under close asset finance which allows the funding of required assets in your business. One is the asset purchase agreement and the other is minimum term rental agreement. Asset funding can be done between a period of two and five years. Agreements have a fixed rate so that it does not cause too much burden on a person.  

Under the minimum term finance lease which supplies a cash flow for the business has a few stipulations at the end of the contract.

4. the equipment can be used after the contract  by paying a monthly rental

5. once the notice period has expired the equipment must be returned

6. the equipment can be sold to a third party at the market price

 Under the asset purchase agreement reclaiming of the capital is allowed. Once the agreement has ended you can keep the equipment by paying a minimal fee or the equipment can be retuned as originally planned.  

It is wise to invest in equipment using cash flow rather than using the working capital or waiting for a capital budget. The repayment method remains to be fixed unlike at a bank where the method can be floating. This enables you to spread the cost over a period of time. While there is an economic downturn on, the facility on any of these agreements is not withdrawn. Only in the case of default the facility will be withdrawn from the company. Facilities obtained by an individual can be mixed with the bank and borrowing institution. Asset financing allows you to maintain your credit line while funding your assets using cash flow. This factor will maximize the potential in your business.  

Leasing can be made use of to finance the bigger proportions, sometimes all equipment as well. This can be done with an initial flow of minimal cash. There is flexibility in all agreements reached and agreements can be specifically designed to suit a person’s requirements. You can choose the suppliers that suit you, negotiations can be done from the outset directly while you get buying power to spend cash.