When do you need vehicle and asset finance services?
Vehicle and asset financing is a sort of debt based on a company's assets. The company secures short-term financing in asset finance by using existing inventories, accounts receivable, or short-term investments. When do you need a vehicle and asset finance services? 1. When you need to protect the use of assets. Capital expenditures for outright asset purchases can put a company's working capital and cash flow under strain. Asset financing allows a firm to acquire the assets it needs to operate and expand while keeping financial flexibility to invest in other areas. Buying assets ultimately can be costly, hazardous, and prevent a company from growing. 2. Using assets to secure a loan Asset financing also refers to a company seeking to secure a loan by pledging assets from its balance sheet as collateral. Asset finance will be used instead of conventional funding because the lending is based on the use of the assets very than the company's creditwor...