What is the difference between loan & asset finance?

Asset finance is a funding option aimed purely at securing equipment or machinery without the large upfront cost eating into a business’ revenue. It allows you to acquire replacement equipment or new and improved machines quickly to continue the smooth operations of your business without having to remove money from other parts of the business or affecting your customers. This differs from a business loan which can be used to inject cash into any part of the business, not just to secure assets. Business loans can be used to cover cash flow during seasonal periods, employ more staff or invest in the business property. For more information on which finance option may be best for you, get in touch with the team today.