Asset Finance Coffs Harbour

What is Asset Finance?

Asset finance is a broad term that refers to a range of financial products used to acquire assets. These assets could be anything from vehicles and machinery to office equipment and more. In essence, it allows you to pay for these assets in instalments over a period, instead of a hefty upfront cost. This approach can be particularly beneficial for businesses that require essential equipment but may not have the capital available to purchase it outright. It’s a financial solution that offers flexibility and efficiency in acquiring assets.

However, it’s crucial to understand that asset finance is different from asset refinance. While asset finance focuses on acquiring new assets, asset refinance is about leveraging existing ones to release cash. Each serves a distinct purpose, depending on your financial goals and requirements.

Types of Asset Finance Available

There are various forms of asset finance, each with its unique features and benefits. Let’s delve into some of the main types:

• Hire Purchase. Hire purchase is an ideal option if you intend to own the asset at the end of the agreement. You make repayments over a term, and once completed, the asset becomes yours. It’s a straightforward way to eventually own an asset, with the benefit that the asset appears on your balance sheet from the start of the term.
• Hire Purchase with Balloon Payment. In this variation of hire purchase, the monthly payments are lower, as they cover only the interest. A final ‘balloon’ payment is then made to cover the loan amount. It’s a method that reduces monthly costs, but the total payable might be higher than standard hire purchase.
• Finance Lease. With a finance lease, the finance provider purchases the asset and rents it to you. You make monthly payments to cover the cost of the asset, plus interest. It offers flexibility at the end of the term: continue renting, return the asset, or sell it on behalf of the provider. It’s a popular choice for those who want to use an asset without the commitment of ownership.
• Operating Lease. Operating leases are suitable if you need an asset for a specific period. You can rent equipment for a set duration and might even have the option to upgrade during the rental period. Maintenance of the asset is usually handled by the finance provider, making it a hassle-free option for many businesses.
• Contract Hire. Ideal for businesses relying on fleets, contract hire simplifies the process of sourcing and maintaining vehicles. The provider handles these aspects, and you make payments over a set lease term.

Partnering with Azure Finance for Asset Finance Solutions

At Azure Finance, we’re dedicated to helping you navigate the complexities of asset finance. Our team of experts will work with you to understand your specific needs and match you with the most suitable finance option. We pride ourselves on our personalised approach, ensuring that the solution we provide aligns perfectly with your business goals and financial situation.

Asset finance can be a strategic tool for acquiring essential assets. It offers flexibility, better cash flow management, and access to vital equipment without the burden of significant upfront costs. At Azure Finance, we’re here to guide you through every step of this process. If you’re considering asset finance, we invite you to reach out to us. Let’s discuss how we can support your business with the right finance solutions.

Contact us today, and let’s explore your options for asset finance Coffs Harbour.