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| Strengthen Your Business With Asset Finance |
A Business cannot be imagined without finances. Business without funds is just as a tree without roots. When you need money specifically for your business, then business asset finance is the best source of finance.
Today various banks, financial institutions and building societies provide business asset finance. Presence of number of lenders in the financial market makes market further competitive and enables the lender to offer low and competitive rates.
Business asset finance can be used in either of the following ways:
o Starting new business
o Expanding existing business
o Purchasing machinery and equipments
o Consolidating business debts
Like other loan in the loan market, business asset finance is available in two forms:
o Secured business asset finance
In secured business asset finance, the person is needed to place an asset as collateral against the loan amount. Here, collateral can be house, car or any other valuable bank papers etc. More is the equity in the collateral; more are the chances of getting larger amount being approved. But, while availing loan, the person must make sure that he makes timely repayment, otherwise the lender can seize or sell the asset in order to realize his due amount of payment.
o Unsecured business finance
In unsecured business asset finance, there is no need to place collateral. Instead of collateral, he is asked to submit certain proofs and documents. It involves no risk on the asset. It carries low rates which are higher than the rates being offered in secured business asset finance. Otherwise, they are also competitive in the financial market.
Interest rate varies from person to person. They carry low and competitive rate of interest. The lender determines the rate of interest by considering following factors:
o Flow of income
o Credit worthiness
o Financial status
o Equity in collateral (in case of secured business asset finance)
