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What is asset finance?
Asset finance focuses on using the value of your current personal or business assets to facilitate the borrowing of temporary loans, rather than going through the often lengthy analytical process required by traditional financing services.
By borrowing money based on the value of the assets you currently own, and putting said assets up as collateral equating to the required loan value, you can raise essential finances at short notice with minimal red tape.
Put another way, this sort of financing gives you the flexibility you need to kick-start any sudden investment project you have, or to cover any potential interim fiscal shortfalls you might experience, until you’re able to properly disentangle and liquidate the required assets from your wider financial web to cover the associated loan costs.
Is asset finance the same as asset-based financing?
Although similar in name, unlike asset finance, asset-based financing is where you acquire a specific asset through a small deposit before repaying the rest of the costs back in monthly instalments or a later, larger single payment.
Asset-based financing is very much a means of acquiring new assets, whereas asset finance solutions provide a way for you to raise funding fast by borrowing against the current value of the assets you already own.
What are the benefits of asset finance?
As you can no doubt already tell, there are several excellent benefits that come with incorporating business asset financing as part of your overall fiscal plan, including:
- Financial versatility – Asset financing is a fantastic way to raise small but essential levels of capital quickly, enabling you to finance projects of varying sizes at short notice without being restricted to a set loan value
- Short-term viability – By making smaller levels of capital more readily accessible, asset financing lets you cover short-term fiscal costs without impacting the wider finances of your business, giving you the time you need to unlock other sources of long-term funding to repay your loans
- Minimal additional costs – As asset financing focuses on using what you own to borrow money, rather than direct capital, it imposes minimal fiscal impact on your current finances and your cash flow
- Growth stimulation – Both businesses and individual investors can often be faced with the need to suddenly take advantage of unforeseen growth opportunities, and asset financing lets you do just that without impacting your pre-established growth plans
Our business asset finance options
By using your assets as a means of generating capital, you can open up a multitude of financing options that may otherwise have been unavailable to you or your business – even if you have a limited asset pool to work with.
Providing a tailored business asset finance package, our experienced credit advisers will work with you to coordinate and simplify what can often be a complex transaction, helping you to find the asset finance option that’s right for your wealth, family, and fiscal objectives, based on the assets you currently own.
Below are just some of the core asset finance options we work with:
Business and private jets
We’re in a position to provide competitive aircraft loans for personal and business jets. And if you already own an aircraft, you can potentially leverage its value against it in the same way as you would any other physical assets.
Commercial real estate
We offer comprehensive commercial real estate solutions and high net worth mortgages with competitive terms, pricing, and repayment options, which are ideal for purchasing and refinancing the structuring of the following:
• Multi-family rental properties
• Multi-tenant offices
• Retail and warehouse properties
• Mixed-use multi-family, office, and retail properties
Fine art
We can create art-secured loan programmes that are designed for your needs and give you the opportunity needed to unlock liquidity from your art collection – our specialists can even help to facilitate transactions by using relevant research and tailored financing options.
Hedge funds
As well as being an important part of a diversified investment portfolio, a hedge fund portfolio can be an eligible asset for investors seeking financing, and we regularly provide financing to clients wanting to use their diversified hedge fund portfolio as collateral. Learn more about hedge fund management.
Intellectual property
Our extensive global experience allows us to support interests in the music industry by monetising their underlying music copyrights and future royalty income. Proceeds can then be used to refinance existing debt, acquire new titles or catalogues, facilitate ownership transfers, or be set aside for working capital needs, investment purposes, and tour financing.
Life insurance policies
Life insurance can be an essential estate and succession-planning tool, but premiums on these policies can be costly. However, our insurance premium financing removes such hurdles by letting our clients leverage the cash surrender value of their policies as a means to cover such costs.
Private equity
To support your specialised and individual needs, you can use private equity positions to provide liquidity and improve portfolio diversification by assessing liquidity against private equity positions on a case-by-case basis.
We have capabilities to provide financing against a wide range of assets.
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