While you Focus on your Core Competency, Let the Experts Manage your Assets
An AFC is a type of (NBFC) NON-BANKING FINANCIAL COMPANY which is a financial institution carrying on as its principal business and the financing of physical asset supporting economic activity and productivity, such asset include as machines, tractors, automobiles and industry machineries. Asset finance works in a few different ways, depending on which type of asset finance you opt for. Hire purchase works by enabling you to spread the cost of purchasing an asset over a set amount of time. Once you’ve paid the lender in full, the asset is yours to keep.
There are two types of leases one is capital lease and the other one is the financial lease. The lender buys the asset you need, and rents it to you on a lease. That means you have it straight away, and only need a fraction of the total amount up front. Generally, you have to pay the first month’s rent, spreading the VAT over the whole period. At the end of the lease, you can either continue leasing the item, buy it outright at an agreed price(factoring in money already spent), upgrade to a new piece of equipment on a new lease, or simply return it.
There are two types of leases one is capital lease and the other one is the financial lease. The lender buys the asset you need, and rents it to you on a lease. That means you have it straight away, and only need a fraction of the total amount up front. Generally, you have to pay the first month’s rent, spreading the VAT over the whole period. At the end of the lease, you can either continue leasing the item, buy it outright at an agreed price (factoring in money already spent), upgrade to a new piece of equipment on a new lease, or simply return it.
After doing some research, you decide to opt for the hire purchase option. As the asset itself acts as the loan collateral, you don’t have to offer security which is another plus.
We understand the requisites of a growing manufacturing company and therefore bring to you a list of asset finance companies that will most definitely sooth your troubles of getting your assets procured, maintained, and managed.
Do let us know what you think.
There are two types of leases one is capital lease and the other one is the financial lease. The lender buys the asset you need, and rents it to you on a lease. That means you have it straight away, and only need a fraction of the total amount up front. Generally, you have to pay the first month’s rent, spreading the VAT over the whole period. At the end of the lease, you can either continue leasing the item, buy it outright at an agreed price(factoring in money already spent), upgrade to a new piece of equipment on a new lease, or simply return it.
There are two types of leases one is capital lease and the other one is the financial lease. The lender buys the asset you need, and rents it to you on a lease. That means you have it straight away, and only need a fraction of the total amount up front. Generally, you have to pay the first month’s rent, spreading the VAT over the whole period. At the end of the lease, you can either continue leasing the item, buy it outright at an agreed price (factoring in money already spent), upgrade to a new piece of equipment on a new lease, or simply return it.
After doing some research, you decide to opt for the hire purchase option. As the asset itself acts as the loan collateral, you don’t have to offer security which is another plus.
We understand the requisites of a growing manufacturing company and therefore bring to you a list of asset finance companies that will most definitely sooth your troubles of getting your assets procured, maintained, and managed.
Do let us know what you think.
