In the UK businesses across the country are seeking out innovative ways of obtaining business funding to sustain their growth. And many businesses have discovered that the most suitable way to do this is by entering into an asset finance scheme. But what actually is an asset finance scheme and how does it work? Below is a simple yet informative introduction to the world of asset finance schemes and what businesses need to do in order to tap into this type of business funding.

Businesses across the UK continue to find it exceedingly difficult to grow because of the reluctance to lend through conventional means. Naturally these businesses need to obtain business funding if they have no cashflow available. And that is where asset finance schemes offer a solution as they allow businesses to release capital from their company assets. In the UK businesses can access asset finance services with many financing companies across the country.

You may be surprised to hear that there are many business assets that can utilised to generate business funding. These include commercial equipment, machinery and many more. With asset finance schemes virtually all business assets are fundable. Businesses can use specific assets they hold as collateral against the business funding. As you would imagine the kind of assets businesses will have to provide for collateral will depend on business funding they are seeking through the asset finance scheme.

So what about the rate of interest charged on monies raised via asset finance schemes? And what about if the business fails to honour its monthly repayments? First of all, this type of business funding scheme does have slightly higher interest rates than other methods of borrowing capital. However, as we have already mentioned asset finance schemes are popular and offered by many financial companies. This means that competition keeps interest rates competitive. As for defaulting on regular payments with this type of business funding, business could actually lose the assets they put up for collateral. Therefore it is crucial that businesses make sure in advance that they can afford to keep up with repayments under an asset finance scheme.

If your business needs to expand but just does not have the funding available to do so then it may be worthwhile considering an asset finance scheme to gain business funding. Asset finance can be used for a wide variety of business purposes. A good idea would be check one of the many reputable business financiers that offer this type of business funding. A good start would be to check out the Bell Finance website. Bell Finance are based in the Warwickshire area and offer comprehensive asset finance schemes. Bell Finance can also offer businesses many other financing options. Get in touch with them at bellfinance.co.uk.