Asset finance

Asset finance allows organizations to access the assets they need to grow without disrupting cash flow. It is often used by businesses who spot opportunities to develop but don’t necessarily have the capital available to make an outright purchase. As an alternative, asset financing allows businesses to spread the cost of an asset by using the asset itself as collateral.

For example, imagine a business that requires an expensive piece of machinery to increase production. The machinery costs £15,000, but the business doesn’t want to risk disrupting cash flow. With asset finance, the business can gain access to the machinery at an affordable monthly rate.

In some cases, businesses also use assets they already own outright - such as vehicles, machinery or technological hardware - to secure a loan from an asset finance provider. This can be beneficial in releasing equity at critical junctures during the development of a business.

At Siemens Financial Services, our asset finance solutions are designed to help organizations manage their cash flow. This helps provide greater financial flexibility when it comes to business growth and day-to-day operational requirements.

Our asset financing options are structured to provide businesses with a more flexible source of working capital. This is achieved by the monetization of assets on the balance sheet. Your business will benefit from Siemens’ ability to provide you with an affordable repayment structure that helps to accelerate industrial growth. With simple and competitive asset finance solutions designed to fit your business needs, your organization can grow with access to the assets you need to succeed at affordable and flexible rates.

Asset financing is one of the most popular solutions for businesses of all sizes. It is suitable for a variety of organisations, from sole traders to international corporations. In previous times, asset finance tended to only be used by larger businesses, but with minimum finance levels being lowered across the board it is now a widespread option for all organisations.

In many respects, the risks associated with asset finance are much lower in comparison to regular business loans. You won’t incur any penalty charges for missed payments, and if you get to the point where you can no longer pay for the asset, you’ll only lose the equipment. This means that in a worst-case scenario, you won’t experience any direct impact on cash flow. Asset finance can therefore be considered not just safe, but also beneficial for businesses of all sizes looking to expand their operations.