What is Asset Business Finance?
A business is made up of many different assets. Some businesses are asset rich, and need to be in order to best serve their customers, others have very few assets. All businesses will need a range of assets in order to meet the needs of their customers.
Assets can be classed in two groups, namely fixed assets and movable assets. The former includes property, while the latter includes many things such as vehicles, aircraft, marine craft, light & heavy commercial vehicles, heavy plant machinery, and so on; basically anything physical that is used in daily business operations.
Paying cash for assets can place strain on the working capital of a business. It can also reduce the future opportunities due to a lack of available funds at short notice. This is why established and new businesses often use business finance as a viable alternative to buying assets for cash, thus working capital kept in the bank and the cost of their acquisition is spread over several years.
