Asset Finance enables businesses to acquire essential equipment without a significant upfront payment. Rather than purchasing assets outright, companies make regular payments over a specified period, which helps them avoid the full cost of buying equipment immediately.
In the construction sector, Asset Finance is particularly important due to the high costs of necessary machinery and equipment. Many businesses find it difficult to afford these assets outright, which can delay projects and disrupt operations. By using Asset Finance, construction firms can obtain the equipment they need while maintaining their cash flow. Recent data from the Finance & Leasing Association (FLA) indicates that plant and machinery finance grew by 9% in April 2024 compared to the same period in 2023.
Asset Finance offers several benefits to construction businesses, including flexible repayment plans that help maintain cash flow and working capital. Businesses can access the latest technology without needing to save up for purchases, providing a competitive edge. Additionally, Asset Finance can offer tax advantages such as VAT deferrals, reducing upfront costs and improving cash flow management.
During seasonal lows, such as winter, Asset Finance can help by releasing cash held in the value of existing machinery, ensuring continued operation. This financing option also provides greater control over working capital, allowing businesses to scale up or down according to project needs.
Construction companies can finance various assets through Asset Finance, including excavators, access lifts, crushers, loaders, screeners, bulldozers, dumpers, demolition equipment, construction vehicles, and site plant.
Time Finance offers multiple flexible funding solutions to support construction businesses, including Asset Finance, business loans, and asset-based lending. These options provide the necessary financial support to achieve business goals, manage cash flow, and acquire new machinery.
Time Finance plc (LON:TIME) is an AIM-listed business specialising in the provision or arrangement of funding solutions to UK businesses seeking to access the finance they need to realise their growth plans. Time Finance can fund businesses or arrange funding with their trusted partners through Asset Finance, Invoice Finance, Business Loans, Vehicle Finance or Asset Based Lending.
