Asset Management: Finance
Demystifying asset finance for the waste and recycling industry
By VICKY HEATH: Senior Marketing Executive at Close Brothers Asset Finance
ASSET finance is an alternative form of funding used by businesses to obtain the equipment they need to grow. In effect, it utilises the residual value in an asset to either pay for, or put down, a deposit on another piece of kit.
It usually involves paying a regular charge for use of the asset over an agreed period of time, avoiding the full cost of buying outright.
Common examples of asset finance products are:
Hire Purchase (HP) allows the customer to buy the equipment on credit. The finance company purchases the asset on behalf of the customer and owns the asset until the final instalment is paid, at which point the customer is given the option to buy it
Refinancing: The finance company purchases the asset and finances it back to you. Repayments are calculated in line with the income stream that will be generated by the asset; at the end of the refinance term, you own the asset
Give your cash flow a boost with asset finance
Finance lease: The full value of the equipment is repaid to the finance company, plus interest, over the lease period. At the end of the term, the company can choose to: • continue to use the asset by entering a secondary rental period;
• sell the asset and keep a portion of the income from the sale; or
We all have a vision of growing our business, but without cash our vision can quickly become a blur.
• return it.
Our straightforward capital release options can help you unlock cash held in existing assets and gain a clear perspective on your finance.
Take control of your cash flow with Close Brothers Asset Finance
Operating Lease: An operating lease may be more appropriate if a company does not need the equipment for its entire working life. The leasing company may retain responsibility for maintenance and is likely to take the equipment back at the end of the lease period
01244 456172
www.closeasset.co.uk/refocus
Types of assets financed
Close Brothers Asset Finance is a trading style of Close Brothers Limited. Close Brothers Limited is registered in England and Wales (Company Number
00195626) and its registered office is 10 Crown Place, London, EC2A 4FT. 18
The beauty of asset finance is its flexibility ‒ it can be used to fund any asset, including attachments for machinery like buckets, grabs or magnets for excavators. For example, other waste and recycling assets we fund at Close Brothers include: • fire suppression equipment; • hydraulic breakers; and • biomass boilers.
We can even help with the refurbishment of shredders, for example, where we pay the refurbishment costs by taking security of an asset to aid cashflow, via Sale & HP Back.
It makes the otherwise unaffordable affordable because it gives businesses access to the equipment they need without incurring the cash flow disadvantage of an outright purchase.
Agreements can also be customised to the business’s needs, with flexibility on both the term and repayment schedule.
So, when your business is looking to grow, asset finance can give you the boost you need to get ahead in the game.
www.closeassetfinance.co.uk /asset-finance
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