Companies use their balance sheet assets like short-term investments, inventory, and account receivables to borrow money or get a loan. This process is called asset financing.
The lender will get the security interest in the assets.
Asset financing is somewhat different from the usual financing methods. The business which is borrowing money gives its assets to get a quick loan. If they go for traditional methods of getting a loan, it will take those months to finally have the money in hand. Hence asset finance comes into the picture where businesses can quickly get funding based on their assets.
Two words float in the world of asset-based funding. They are asset financing and asset-based lending. Asset financing is the term that defines that you are using your currently owned assets to get funding. The assets you own, that can be machinery or a warehouse, are used as collateral for getting the fund. Asset-based lending is the term that defines that you are borrowing money to buy an asset. The asset you purchase using the borrowed money becomes the collateral for the borrowed money.
Asset financing is essential for the corporate business to grow successfully by providing a quick money flow to start the work immediately.
Asset finance helps for a startup:
Asset finance offers to hire purchase or leasing where the purchase price is broken down to monthly sums. If your business is just a startup and you want machinery and equipment, asset finance provides excellent help.
Helps to raise capital:
Asset finance can also be used to borrow against the fixed asset. Fixed assets are things like computers, vehicles, plants, technology, machinery, etc. These can be held as security by the lender.
Asset finance for short term growth:
Asset finance gets approved in very few days, and you can start releasing cash flow immediately. If you want quick funding for your business or want to take advantage of opportunities in the industry, this asset finance is the best.
Asset finance helps to save tax
Asset finance can also be used to save the tax by using the asset to lease the equipment or vehicles. These will be considered as business expenses.
Conclusion:
A challis capital partner is a company that offers innovative financial solutions to industry participants by creating a capital partnership between investors and the industry participants. They can help you to get a perfect lender for asset financing for the business.
Address
Head Office
Level 43 Governor Phillip Tower
1 Farrer Place Sydney, NSW Australia 2000
Telephone: 1300 01 01 71
Offshore Callers: + 61-2 8488 9911
Website: https://www.challiscapital.com.au
