Asset finance is the practice of using a company’s balance sheet assets (such as investments or inventory) as a security to borrow money or take out a loan against what you already own. It can provide a secure and easy way of getting working capital for your business.
Various things can be offered as collateral, from inventory, machinery and even buildings. For example, a transport company may use its vehicles as an asset to secure finance against. The amount loaned will usually depend on the value of these assets which the finance is secured against.
Asset financing is often used as short-term funding solution - to pay employees, suppliers or to finance growth. It provides a more flexible way of borrowing compared to traditional bank loans. For growing businesses and start-ups especially, it provides an easy way to increase working capital.
Advantages of asset finance:
Disadvantages of asset based finance:
Asset finance can help many businesses, but it’s important to be sure this financing method is right for your business model.
At MarketInvoice, our invoice discounting solutions provide an alternative. You get an advance against your outstanding customer invoices rather than a fixed asset, like machinery or inventory. We offer funding against select invoices, as and when you need funding. Or you can also get regular funding through our whole ledger solution.
It’s quick and easy to access funds, which means you can get the cash flow you need to get on with business. With MarketInvoice, you get: