Q&A

Asset Finance - What is it?

Asset finance enables a business to purchase capital equipment - new or used - without the large cash outlay of outright purchase.

Typically, asset lenders will enable you to repay the facility over 2 to 7 years using facilities such as hire purchase, lease purchase, finance lease, operating lease or other such market terms. The difference is largely a tax issue and your accountant and broker should be able assist you in ascertaining the best approach to take.

Why lease equipment when I could purchase it outright?

Machinery will depreciate over time thereby leaving very little in terms of asset value. Leasing enables your company to have immediate use of the machinery while your cash can be put to use in other areas of the business such as increasing marketing or keeping it in a high yield deposit account.

When leasing, what happens to the equipment warranties and guarantees?

Warranties and guarantees remain unaffected by a lease agreement.

Can a lease be added to or settled?

To add to an existing lease or to settle an agreement is allowed, it requires a very simple process that can be completed in minutes.

My research indicates that there are many drawbacks about financing equipment through my bank. Can you explain why?

You could find that interest suddenly rises making your payments more expensive than you imagined. Bank overdrafts or loans also eat into your available credit facilities. Bank facilities can also include a costly set-up charge. The bank normally requires additional security over your assets. Platinum Currency works with a plethora of finance providers where the above risks are mitigated or non-existent.

How do I know I will get the best price on the equipment I want?

You will negotiate your own best price with the vendor of your choice. Platinum Currency will then negotiate the best finance deal for you for the equipment that you have selected at the price you have agreed.

Does the equipment have to be new?

No. We provide lease financing for used equipment as well, in fact we can even buy back equipment recently purchased for cash and lease it back to you to free up cash!

How soon can you issue a finance proposal and what information is required?

A proposal can be issued usually within 5 hours after receiving (1) the Application in full (2) Set of Accounts (3) Copy of your Bank Statements for the past 3 months.

Occasionally, you may also be asked to provide additional standard items.