Asset finance is a popular financing option for businesses in Auckland and across New Zealand as it allows businesses looking to acquire the necessary assets to grow their operations without breaking the bank in terms of cash flow. It is a loan secured by the assets of the borrower, such as vehicles, machinery and equipment.
If you’re thinking about using asset finance, it’s important to know which assets qualify for financing and how it all works.
To help you understand the benefits of asset finance in Auckland NZ and the different types available, we’ve compiled this guide. So, let’s dive right in and help you make an informed decision for your business.
Benefits of Asset Finance:
Asset finance is a fantastic solution for businesses that want to acquire assets without making an upfront payment. Instead, the cost of the asset is spread out over time, making it easier to manage your cash flow. And because the loan is secured by the asset itself, interest rates tend to be lower than other types of loans.
Another great benefit of asset finance is the ability to upgrade your equipment or vehicles on a regular basis. This is especially useful for businesses that rely heavily on technology or equipment, as it allows them to stay competitive by using the latest and greatest tools in their industry.
But that’s not all. Depending on how your asset finance agreement is structured, you may be able to claim tax deductions for the interest and depreciation of the asset. This can help reduce your tax liability and boost your cash flow.
And best of all, asset finance agreements can be customised to suit your specific needs and budget. This means you can enjoy flexible repayment terms that fit your cash flow and revenue stream, making it easier to manage your finances. So, if you’re considering asset finance for your business, there are plenty of reasons to feel confident that it can be a smart choice.
What Can You Get Asset Finance For?
When you work with us we can get you the financing on the following:
Tracked and Wheeled Assets
Such as motor vehicles, buses, trucks, trailers, diggers, bulldozers, tractors etc. This could apply to personal or business.
Plant and Machinery
For example construction assets, forest gear, agricultural assets, spreaders etc
Equipment
Such as medical and cosmetic machines, manufacturing assets, production lines and CNC laser machines.
Types of Asset Finance:
There are several different types of asset finance available for businesses in Auckland and all across NZ, each with its own benefits and drawbacks. Some of the most common types of asset finance include:
Hire Purchase: This type of asset finance allows businesses to purchase an asset and pay for it over time, with ownership transferring to the borrower once the loan is paid off in full.
Operating Lease: With an operating lease, the lender retains ownership of the asset and leases it to the borrower for a set period of time. At the end of the lease, the borrower has the option to return the asset or purchase it at a predetermined price.
Finance Lease: Similar to an operating lease, a finance lease allows businesses to use an asset for a set period of time in exchange for regular payments. However, with a finance lease, the borrower is responsible for maintaining and insuring the asset.
Chattel Mortgage: A chattel mortgage is a type of loan where the lender provides funds to purchase an asset, and the borrower uses the asset as collateral. Once the loan is paid off, ownership of the asset transfers to the borrower.
At Ascend Financial Services, we specialise in providing asset finance solutions to business across Auckland and NZ. So whether you’re looking to upgrade your equipment or purchase a new vehicle or want to review and restructure/refinance your debt, get in touch with us today! We’ll help you achieve your goals.