It can often be difficult for startup companies to secure the funding they need, and with so many options to choose from it can feel like a bit of a minefield. All funding options come with their own benefits and drawbacks. For example, an investment can bring you more than just cash – it gives you the expertise of your chosen investor, which many startups benefit from. However, it does mean that you need to consult with other stakeholders on decisions rather than being the only boss. Meanwhile, if you can afford self-funding, this could make you more focused on revenue and gives you more autonomy, but it is expensive and risky.
Beyond bank loans, investments, self-funding, and slightly more unconventional methods such as crowdfunding, there is another option for startups: asset finance. Asset finance comes in many forms including leasing, hire purchase and loans, and the benefits of all of these can be particularly helpful for startups. Here are a few reasons why you may want to consider asset finance for your startup business:
Spread the cost of assets
With asset finance, you can spread costs over a longer period of time. This means that you can protect your cash flow and continue to grow your business even while you pay off your loan.
Buy your assets now
If you think you can’t afford to buy the equipment you need straight away, think again. Leasing your equipment may mean you can buy and start using what you need when you need it, without the large upfront costs. This is great for startup businesses which may otherwise find it difficult to get off the ground while funding expensive equipment.
Flexible options for asset finance
If you lease your equipment, you have a little flexibility at the end of your term. You could buy the equipment yourself if you still need it, or if you now require something more up to date, you could upgrade to a newer model. This flexibility means you’re able to do whatever is best to help your business grow. Hire purchase also allows you to buy the equipment at the end of your contract, while a fixed-term rental agreement is ideal for short to medium life equipment. There are many different options when it comes to asset finance, and finding the best one for you could be the making of your business.
If you would like to know more about how asset finance could help get your startup off the ground, contact Arkle Finance using the form on the right or call 01933 304 899.