Commercial Asset finance is a way of financing the purchase of an asset. An asset is a resource or a property owned by a person or a business that creates a positive economic value such as buildings, offices, vehicles, IT software, and equipment.

Asset finance services are provided by institutions which are usually banks or independent asset finance companies. The terms and conditions usually vary greatly depending on both parties, but it usually results in the client making periodic payments to the asset finance company that facilitated the transaction for the total amount of the original purchase plus fees, just like a regular loan.

There are several reasons why a person or a business would choose to make a purchase via an asset finance company, such as opportunity costs or tax implications. However, most businesses consider asset financing due to poor cash flow.

Assets are vital for any company, but they tend to be quite expensive, which makes it difficult for small businesses to make up-front payments in full. Therefore, borrowing the money to make such transactions is the best alternative to get the asset they need without affecting their short-term cash flow. At Reliable Advisors we can help you choose to make the right options for asset finance with which perfectly meet your business requirements.