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Asset finance: how it works…

Close Brothers Asset Finance is one of the leading funders of fairground equipment in the UK, having proudly served the sector for many years. In this article we find out more about how asset finance works.

There are various products that come under the broad umbrella of asset finance with one of the key ones being refinancing or capital release; it’s a proven way to make your assets work for you and release cash back into the business.

It’s pretty straightforward and works by the finance company purchasing the asset and financing it back to you, with repayments calculated in line with the income the asset is expected to generate; at the end of the refinance term, you own the asset.
Other examples of asset finance products Close Brothers Asset Finance offers include:

  • Hire Purchase is a product where the borrower agrees to pay for an asset in instalments over an agreed period, during which they are responsible for the maintenance and repair of the asset. When the agreement ends, the borrower has the option of purchasing the asset outright
  • Sale and HP Back is a form of refinance where the lender purchases an asset and finances it back to the borrower. Repayments are calculated in line with the income stream that will be generated by the asset, and at the end of the refinance term, the borrower owns the asset
  • Finance Lease lets the borrower use equipment without having to buy it outright. Rent is paid to the lender for its full use, and the rental period is flexible and can be tailored, depending on requirements. During the rental period, the borrower pays the full cost of the asset, including interest
  • Operating Lease is a type of asset finance where the borrower rents the asset for a short period. At the end of the lease term, the borrower can choose to either return the asset or continue leasing it.

At Close Brothers Asset Finance we ensure each deal is bespoke to a customer’s needs; by offering a personal face-to-face or virtual service, we look outside the box to provide the solution needed.

Each product is tailored to a customer’s individual needs – it’s not one size fits all. Our evolution is about ensuring we’re flexible to customers’ changing needs, offering agreements that fit their cash flow requirements at a given point in time, rather than merely providing a standard vanilla offering.

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