You might have heard the term “asset finance”. Have you ever wondered what is it all about? Asset financing is a type of lending that will allow you to access the business assets such as equipment, machinery and vehicles thus enabling you to get the cash from the value in assets that you already own. The asset financing includes equipment leasing, hire purchase, finance leases, operating leases and asset refinance.
Commercial finance is another term used for business finance or business funding. It usually comes from the mainstream lenders including high street banks.
Have a look at the different types of commercial financing:-
Commercial loans Australia are considered the simplest form of commercial loans. These loans can be either secured or unsecured. Secured ones are cheaper while the unsecured commercial loans are much useful for the companies that do not have enough assets to get the secured loans. You can get these commercial loans from a variety of sources including mainstream banks, challenger banks and the independent lenders.
Thus, if you are looking for funding a new contract, managing buy-outs, international expansion, turnarounds and pre-packs; commercial loans are quite much popular.
The lender will usually charge interest on the overdrawn amount and the businesses often use these overdrafts as the small loans that usually serve to cover the cash flow gaps.
Line of credit
It includes a long term arrangement between the business and the lender that allows the business to access the funds up to an approved limit.
Cash flow finance
It allows a business to get the cash even before their customers pay. It services the cash flow gap between outgoings and income.
Thus, you need to acknowledge that you can find a loan that perfectly suits your business. You just need to have a word with your mortgage broker about the commercial as well as asset financing.