For SMEs working within the freight and haulage sectors, expanding your fleet of HGVs, trucks and other vehicles is paramount for continued customer growth.
As much as buying a new truck for your business may be seen an essential purchase, there's no getting away from the fact that this sort of expense can be very costly. An outlay of this size can put a big strain on your immediately available capital which is why asset finance has proved to be such a popular option for growing businesses within the transport sector.
Asset finance is a fantastic lending option for those looking to purchase a new truck without having to pay the full costs up front. They come in various forms, however as a general rule of thumb they share the same principle of lending you capital which will be repaid over the economic life of the vehicle.
It's often difficult getting accepted for truck finance from a traditional bank or building society whilst the application process can also be long winded and time consuming. Asset finance is structured in such a way that any money lent to you is secured against the asset, giving your lender added security by allowing them to retain ownership of the truck until the balance has been repaid.
Since asset finance is typically issued on an initial lease basis, you can offset your monthly repayments against your tax bill as you would with any other business equipment that you hire.
Banks tend to only issue these types of loans over the short or long term whereas the vast majority of HGV finance companies offer mid-term lending of between one and five years. In our experience, we've found this to be far more preferential for SMEs, particularly if they don't wish to continue repaying the debt long after the truck has ceased being used.
There are a number of asset finance options available to help give SMEs maximum flexibility when it comes to growing their fleet and you can access all of these finance types through the Capitalise comparison platform.
Capitalise brings together reputable, trusted lenders from across the UK who specifically deal with businesses in the transport sector. From farm machinery finance and lorry leasing to HGV fleet expansion capital, we can help to match you with a lender that most closely fits your business needs.
Fill out a short application form today at Capitalise and our advanced aggregation system will search a large pool of lenders on your behalf, giving you the freedom to choose a finance partner that offers a competitively priced package.