A business’s success can often rely on the kind of equipment it has at its disposal. Whether a new business owner needs to acquire equipment for starting a brand spanking new company, or an experienced owner needs to replace outdated models, it can be the old age of question; how are you going to afford it? This is where Alternative Funding can step in and save the day!
For example, if you’re a restaurant owner, you will want to continuously update your equipment, from stock levels and computer systems to authorise payments, to the kitchen equipment.
However, it can be difficult to find that extra money to fund modern equipment if you’re an individual who is suffering from bad credit and a lack of cash on the hip to buy what’s required for the future of the business – or is it difficult after all?
It very much depends on your circumstances and willingness to use differing forms of funding, but typically asset finance is used to obtain new equipment for business however there are other ways to acquire business equipment.
There are some important things to consider when purchasing your new equipment?
- Will there be a life cycle to the equipment you are acquiring? If there is then a lease agreement would be a suitable finance product to use. However, if it is a piece of equipment that doesn’t have a life cycle or is a one off purchase then a fast, flexible business loan would be beneficial.
- Are you purchasing a very expensive piece of equipment? 9/10 deposits would be needed for expensive items, have you ever thought of raising the deposit needed through alternative funding or alternatively raising the full amount?
- With even more lenders emerging in the alternative funding market, this has caused a price reduction with certain lenders. Something to consider would be price of an asset finance agreement vs a business loan?
- Are you looking for a flexible contract? A lot of asset finance deals can be difficult to cancel early. However, with the majority of the alternative lenders there are no early repayment fees should you want to cancel the agreement.
- Are you aware of the underwriting process? With asset finance products they tend to look at the balance sheet, whereas the alternative market tends to look at the bigger picture and are more flexible in their
- The restriction of funds? Through an asset finance agreement the funds raised would be solely used for the asset in question, whereby through a business loan funds are unrestricted, so the capital raised can be used to acquire new equipment as well as other means that you see fit within the company.
Funding specialists such as us are able to provide more and more lenders who provide alternative methods of lending.
Searching for business financing can be tricky, to say the least. There are so many lenders out there that it can be difficult to know where to start. Not to mention that lending options are so incredibly diverse.
As a Business Owner, you need to know what your options are right away, you don’t have time for long approval processes and potential loan denials. You need to know that you can secure financing for your business to keep operations running on the right track.
After all, you don’t want the headache associated with the confusing terms and conditions from traditional lenders. Never fear, Aurora Capital are here – finding the best business funding options for your company need not be overwhelming or stressful, we can help you match what you require in terms of funding your new equipment for your organisation!
As funding consultants we assist UK companies in many business industries to raise the necessary capital they require to facilitate future plans in the company. We have access to 15+ different lenders in a range of different lending markets, enabling us to source the most competitive solutions for your business. Not only will we strive to source the most competitive offers, but we can advise you on the best product for your business moving forward.
If you would like to contact us further about the importance of funding your business equipment or have any questions for our team, please give Aurora Capital a call on 01371 870 815. Alternatively, you can email us via email@example.com.