Whether you plan on starting up a new venture or want to expand an established operation, a lack of cash flow can hinder any growth ambitions. That’s why seeking out dedicated lending solutions will empower your business to achieve its goals. Here’s how asset loans can help you acquire the tools to take your business to the next level.

Asset loans explained

This type of lending solution goes by many names depending on the bank or lender. Asset loans, equipment loans, asset finance loans, business asset finance – they all refer to the same thing, which is a way to help Australian businesses get funding for assets or equipment that will help them improve their day-to-day performance.

Unlike a traditional business loan, asset loans typically use the asset or equipment you intend to purchase as security for the loan. So even if you have the capital to purchase a piece of equipment outright, an asset loan can eliminate the immediate impact on your cash flow. Especially for startups and businesses in the midst of growth, asset loans can be the ideal solution.

What can you use asset loans for?

While businesses that are continually required to upgrade or purchase new equipment – such as in mining, agriculture, IT and hospitality – are often the most likely to take advantage of asset loans, businesses in any sector can seek out asset and equipment finance.

Some of the most common uses for asset loans – while not an exhaustive list – include:

• Mining equipment
• Heavy machinery
• Farming equipment and vehicles
• IT equipment
• Fit-out for pubs and kitchens
• Company fleet vehicles

Pros of asset loans

If you are still on the fence about what value asset loans can bring to your business, here are a few of the top reasons why companies across all industries access this lending solution:

• Asset loans are usually more straightforward compared to other loan types (e.g. lines of
  credit).
• Potential for lower interest rates compared to standard business loans.
• Fewer covenants with asset and equipment loans.
• Using the asset or equipment as collateral reduces the risk for lenders, which makes your business a more attractive prospect.

Apace Finance can help your business access quality asset loans solutions

With so many funding options at your disposal, it can be confusing to know which product is right for your business needs. After all, a traditional business loan may be able to cover the costs of any necessary asset and equipment purchases, but that doesn’t mean it’s the most appropriate lending solution. Instead, partnering with a commercial loan broker like Apace Finance means you get access to an extensive panel of potential lenders.

“Having supported countless businesses along their growth journeys, we know that the key to success lies in your ability to get the right equipment for the job,” says Ellie Davidson, Managing Director at Apace Finance. “Unpredictable cash flow or a lack of capital for outright asset purchases shouldn’t hamper your growth strategy, so make sure you explore how asset loans can ensure you always have the right equipment within reach.”

If you need funding for an essential business asset or piece of equipment, contact Apace Finance today or call 1300 045 647. We can help you get the ideal funding solution for your specific business needs.

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