Types of Asset Funding
Put simply, Bad Credit Commercial Asset Funding is the provision of credit or leasing facilities to fund your acquisition of business
vehicles.
What is Bad Credit Commercial Asset Funding?
Security is primarily taken on the vehicle concerned and is generally a stand-alone facility. The cost is spread over a period up to the useful life of the vehicle.
The Benefits Of Bad Credit Commercial Asset Funding:
- The cost of the vehicle can be linked to the income stream it might generate.
- Relatively straightforward facility to arrange.
- The rental profile is agreed at inception allowing simple cashflow management.
- It is a stand-alone facility that leaves other lines of credit intact for working capital.
- Unlike an overdraft, asset finance is generally non-cancellable providing the agreement is maintained correctly.
Types of Bad Credit Commercial Asset Funding:
- Bad Credit Commercial Hire Purchase with Asset Funding
In basic terms, you source the asset and negotiate the purchase price with the supplier. You pay a deposit to the finance company, typically 10-20%, and the finance company then takes title direct from the supplier.
- Bad Credit Commercial Lease Purchase with Asset Funding
Lease Purchase is practically identical to Hire Purchase, the only difference being that instead of paying a deposit of 10-15% you typically pay a deposit as a multiple of the repayments. The remaining balance and interest is repaid in instalments. The number of instalments is defined by the pause.
- Bad Credit Commercial Contract Purchase with Asset Funding
The only salient difference is that typically at the end of the agreement there is a balloon or guaranteed future value specified. This final value reduces the amount you have to repay in instalments.
- Bad Credit Commercial Finance Lease with Asset Funding
With any lease contract the finance company takes full ownership of the asset and rents the goods to you over a predetermined period. The finance company can claim the writing down allowances and convey this benefit to you by reducing the rentals.
- Bad Credit Commercial Operating Lease with Asset Funding
The only difference between an Operating and a Finance Lease is that the primary period rentals do not cover substantially all of the capital cost and hire charges. For example a lease for a printing press costing £400,000 may include a residual value at the end of the primary period of £150,000. The primary rentals are thus based on £250,000 and not the capital cost of £400,000.
- Bad Credit Commercial Capital Raising with Asset Funding
If you require financing for an unsuitable asset, or for project work (MBO etc), capital raising by Sale & LeaseBack, Sale & HPBack, or Chattel Mortgage will enable you to put the equity of your existing assets to good use.
Variations
Further Bad Credit Commercial services offered by Asset Finance:
Sterling Capital Reserve are specialists in all forms of Bad Credit Commercial Asset Finance from Bad Credit Commercial Asset Capital Finance or Bad Credit Commercial Computer Asset Finance. This service is also called Bad Credit Commercial Asset Funding or Bad Credit Commercial Asset Based Finance.
Asset Finance covers Bad Credit Commercial Contract Purchase like Bad Credit Commercial Vehicle Finance, Bad Credit Commercial Hire Purchase, Bad Credit Commercial lease purchase or Bad Credit Commercial leasing and Bad Credit Commercial leasing and Asset Finance.
Asset Finance services can also be used for Bad Credit Commercial Capital Raising.
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Use our Online Enquiry Form on the right hand side of this page or Contact Us on 0800 0735353 and let our professional team find you a competitive UK Commercial Asset Finance Deal.
