For companies in the know, seeking asset financing with an established company such as Dawsongroup | finance is a well-trodden path – in fact we have customers who come to us multiple times a year to get hold of the assets they need while spreading the costs and leaving their cash reserves untapped.
But there are still many businesses paying upfront, or going straight to their bank for a loan, without first exploring the competitive asset financing rates that could be available to them.
We know from our conversations with new clients, who are often surprised at what we can do for them, that there are widely-held misconceptions around what asset financing is for, and who it is for.
So, here we do a little myth-busting to give newcomers a better understanding of whether asset financing is for them.
Myth:
Asset financing is for large companies only.
Reality:
We help businesses of every type and size finance the assets they need to thrive – from start-ups to multinational businesses. If you know what you need and why it will help your business grow, then we can explore financial solutions which can deliver it in an affordable way. If you have a sound business of any size, then get in touch.
Myth:
Asset financing is only for hard assets like trucks.
Reality:
While we certainly do finance a lot of big-ticket items which maintain a resale value – cars, machinery, cold storage units and the like, we know businesses also need ‘soft assets’ such as IT software, security equipment, or fixtures and furniture. These can be just as essential to the fabric of a business, and so can be financed just as something like heavy farm machinery can be.
Myth:
You should only seek asset financing if you don’t have the cash to buy something.
Reality:
Savvy businesses know that buying upfront is not always the best option. Using cash to pay for an asset can leave a business exposed to unexpected bumps in the road, and lacking in flexibility.
With asset financing you can still get hold of what you need to grow your business, while spreading the cost burden over time, across monthly payments that can be easily planned for.
It might even be the case that the asset you acquire boosts your profits, and so offsets that monthly cost. Many big businesses with the cash reserves to buy outright opt to finance assets, leaving them free to invest elsewhere – boosting training and staffing for example.
Myth:
Only certain industries use asset financing.
Reality:
While we specialise in sectors like logistics and transportation, and materials handling, we work across a broad cross section of businesses engaging in commercial and public sector activities – from interior design to justice and judicial activities. The range of assets we finance and companies we work with is vast – just ask!
Myth:
Asset finance is very expensive.
Reality:
While the ‘overall cost’ might look higher on paper than buying upfront, financing an asset is often the more affordable option. You still get hold of what you need, and it can start delivering for your business straight away – whether that’s boosting productivity, giving you an edge on your competitors, access to new markets, or opportunities to innovate. The sooner your business can boost its profits the better – and waiting and ‘saving up’ might actually be the costlier option.
Our understanding of many businesses and sectors, along with access to a wide broker market, also means we can present you with options which could be much more competitive than the rates you’d get from traditional banks.
But of course, the best way to find out if asset financing is right for your business is to speak to us! Get in touch with the Dawsongroup Finance team at info@dgfinance.co.uk or by calling 01425 474070.