FAQ2022-07-30T15:19:24+00:00

Sourcing finance, Supporting growth

Business loans and asset finance for equipment, growth and cash flow

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By submitting this form you agree with the terms and conditions provided and acknowledge that you have read, and agree to proceed, with our standard terms of business and privacy policy – https://thefundingstore.co.uk/privacy/

Sourcing finance, Supporting Growth

Business loans and asset finance for equipment, growth and cash flow

Get an instant quote
Apply now

By submitting this form you agree with the terms and conditions provided and acknowledge that you have read, and agree to proceed, with our standard terms of business and privacy policy – https://thefundingstore.co.uk/privacy/

Welcome to The Funding Store’s FAQ

Here are some of the most frequently asked questions.

If you have a question that is not answered below, or require further information on a question, then please do not hesitate to contact us.

What is asset finance?2022-07-30T15:32:05+00:00

Asset finance is a type of funding that gives your business the ability to access assets such as vehicles, machinery, and equipment without the need to pay for the full cost of the asset upfront.

These types of agreement typically involve regular payment for use of the asset over an agreed period of time.

How much can I borrow for an asset purchase?2022-07-30T15:31:17+00:00

We have lenders that can offer funding from £1,000 up to £10million.

What types of assets can I finance?2022-07-30T15:30:25+00:00

Almost any asset, from vehicles, equipment and machinery to soft assets, such as IT hardware and software.

Contact one of our business managers today to see if we can finance your next asset purchase

Can I borrow 100% of the value of the asset?2022-07-30T15:29:37+00:00

Some of our lenders will allow up to 100% loan to value, typically on new assets, excluding VAT.

What is asset refinance or asset-based lending?2022-07-30T15:28:39+00:00

Asset-based lending, commonly known as asset refinance, is a way of using the existing business assets to raise funding based on their equity value on the balance sheet.

This can be useful if you want to raise funding for cashflow, boost working capital or put down a deposit on a vehicle, machinery, or equipment.

What is the criteria for asset finance / refinance?2022-07-30T15:27:49+00:00

We can consider applications from new starts up to experienced businesses including sole traders, partnerships, limited liability partnerships and limited companies.

Each application is treated on its own merit, including the strength of the business, your experience, and the plans for the future.

For new starts our funders will look for director / personal guarantees in the background.

How do I apply for a asset finance?2022-07-30T15:26:47+00:00

Complete our asset finance contact form, or contact us on 01908 880420, and one of our business managers will speak with you to obtain further information relevant to your application, to help tailor the quote and product to your specific requirement.

We can also answer any questions that you may have.

What different types of asset finance agreements are available?2022-07-30T15:23:52+00:00

Let’s looks at the three most commonly used types of agreements.

Hire Purchase

This is a very simple way to purchase an asset and spread the payment over a fixed amount of time, typically monthly. The asset will appear on your balance sheet, and you will be responsible for maintenance and insurance costs. You will take full ownership of the asset once the agreement ends, and the last payment is made.

  • This type of agreement includes interest, with the full amount of the asset paid for over an agreed period of time, typically 12 months up to 8 years.
  • Each instalment includes an interest charge, which is agreed at the outset.
  • VAT paid upfront. There will be no VAT charges on each rental instalment.
  • Ownership upon completion of the agreement.
  • Full ownership once the final payment is made, typically with a small option to purchase fee, meaning that you will own the asset outright.

Finance Lease

This type of agreement is for those who want flexibility at the end of an agreement. These types of agreements include three parts to each payment made, which are asset cost, interest, and VAT.

  • Flexible payment terms, you can keep the monthly instalment low, by paying a larger deposit, or agreeing to a balloon payment at the end of the agreement. The balloon payment will typically be less than the anticipated market value of the asset, which would allow the asset to be sold to settle the outstanding balloon.
  • VAT paid on each instalment, allowing assets to be more affordable to smaller businesses and non-VAT registered businesses who would not be able to reclaim the full upfront VAT cost.
  • Flexible end of agreement options allows you to carry on using the equipment with additional instalments or sell the equipment and potentially keep some of the proceeds.

Operating Lease

With an operating lease, the agreement is normally shorter than the economic life of the asset, this allows the leasing company to use the resale value to offer reduced payments over the agreed term.

  • All of the risks, and rewards, that come with asset ownership remain with the leasing company, not you.
  • At the end of the agreement, you will no longer be able to use it and it must be returned in good condition. All terms and restrictions must have been adhered to, or you could incur additional costs (e.g., mileage / hours).
  • Repayments are treated as an operational expense, so they do not appear on your balance sheet.
  • Ability to change / upgrade equipment more frequently.
What information will I need to provide to make an application for Asset Finance?2022-07-30T15:25:28+00:00

Information that we will need to proceed.

  • Director(s) full name(s) and contact details.
  • Full business name, address, phone number and email address.
  • Industry and date you started your business.
  • Annual turnover of your business.
  • Full details of the asset that you are looking to purchase.
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