How Asset Financing and Leasing Can Help Your Business Stay Competitive

Is your business looking to access new assets without taking on debt or straining cash flow? Asset financing and leasing solutions provide a flexible and cost-effective way to acquire the equipment, vehicles, or technology your business needs while preserving working capital. In this guide, we'll explore how asset financing works, the types available, and the key advantages it offers to help your business stay competitive and agile in today's market.

How Does Asset Financing Work?

Asset financing, also referred to as asset loans, lets you acquire assets without upfront payment. For instance, you can upgrade work computers by making regular payments over an agreed period, typically with interest or fees attached.

Partnering with a finance company that offers equipment leasing can open up opportunities that might otherwise be out of reach. While every lessor has different requirements, most asset finance applications generally need the following:

• An active New Zealand Business Number (NZBN)
• GST registration for the business
• New Zealand citizenship or permanent residency
   

The asset must also be used primarily, though not exclusively, for business activities.

Types of Asset Financing

• Finance Lease: The most common type of asset financing. It allows a business to use an asset by spreading out payments over time.
• Hire Purchase: This option allows a business to own the asset after the payment period ends.
   

What are the Advantages of Asset Financing and Leasing?
 

Fixed Terms for Business Stability

While traditional loans may allow banks to reclaim assets before the term ends, asset financing offers fixed terms, ensuring greater stability. Once the agreement is signed, businesses can rely on using the asset for the entire term—unless there is a breach of terms or missed payments. This certainty allows business owners to plan confidently and avoid disruptions, especially when the asset is essential to daily operations.

 
Set Interest Rates for Simpler Accounting

Asset financing typically offers fixed interest rates, providing businesses with predictable, consistent payments that are easier to budget for. Fixed rates help businesses maintain stable cash flow and accurate financial forecasts. In contrast, bank loans with variable interest rates can fluctuate, leading to unexpected financial strain and potential disruptions to business operations.

Acquire Assets for their Expected Lifetime

Cost is often the biggest barrier to purchasing an asset outright, but it's not the only consideration. Businesses may prefer asset financing to avoid being tied to long-term ownership, especially if they anticipate needing an upgrade in the future. Asset financing provides flexibility, making it an ideal option for assets that may not be needed long-term. Additionally, options such as hire purchase agreements allow businesses to eventually own the asset once the lease period ends, offering a balance between flexibility and ownership.

Faster Financing Processes

Asset finance is typically faster to secure than traditional bank loans. Its streamlined process allows your business to access what it needs sooner. With an experienced finance company, you won’t be left waiting while opportunities slip by. Faster financing enables quicker strategic decisions and helps address urgent needs immediately.

Greater Flexibility for Financing

Asset financing providers are often more flexible with their financing criteria than banks. They're also experienced with finding solutions specifically for businesses that banks turned away. If your business is still in start-up mode or looking to grow beyond it, asset financing can open the door to new technology or equipment that would otherwise be inaccessible.

Get Started with Asset Financing and Boost Your Business Today

Asset financing allows a business to make strategic decisions quickly rather than going through a slow loan process or gathering cash over time. Partnering with a trusted provider will ensure this decision is well-informed and provide the most value to your business.

 Whether you need marine finance to invest in a new vessel or car finance to expand your fleet, Rostron Finance can provide tailored solutions to suit your specific needs. Contact one of our registered advisers for expert guidance, or start your application today—asset financing is just a few clicks away.