According to recent figures from Companies House, the number of new businesses being created each year continues to grow, with the number so far this year reaching 204,075. But what options are available for start-ups needing access to that all-important funding?
For a number of years following the recession in 2008, many high street banks became averse to start-up and early-stage business lending as these types of deals were perceived to be risky investments.
As the economy recovers and confidence among businesses begins to grow, a number of initiatives have been introduced, such as the Funding for Lending scheme and the British Business Bank, to enable SMEs to borrow. However, not all start-ups meet the eligibility criteria.
For any start-up to make the transition to a small or medium sized enterprise, it must find the money to purchase necessary assets that facilitate this growth, whether its equipment, machinery or vehicles. Here, asset finance can prove to be a life-saver for business owners.
Asset finance packages such as hire purchase and leasing enable businesses to purchase costly equipment through manageable instalment plans with fixed monthly repayments, making the investment much more affordable and reducing the impact on cash flow.
Unlike more rigid forms of funding, asset finance packages can be tailored to the individual needs of the business, including quirks particular to that specific market sector like seasonal cash flow patterns.
As a result, asset finance is growing in popularity among SMEs, not least because the success rate on application is the highest of all the major finance options.
Specialist providers, like Praetura Asset Finance, can be invaluable in offering the best advice and affordable plans with flexibility aligned to your commercial goals. Working with us can also mean immediate access to funds, which can go a long way to taking the strain off SMEs struggling with the challenges of the economic landscape.
For more information about asset finance solutions, call us today on 0333 323 7800.