Now more than ever, the construction sector is facing unique challenges that can impact cash flow and prevent growth. Construction has long been a competitive sector, and now trading conditions are more challenging than ever. Having access to the funds you require, when you need them, can make all the difference.
If you’re considering applying for business funding to finance construction equipment, plant and machinery, asset finance may be the ideal solution for you. Here we’ll talk about what asset finance is, and how it can help your construction business to grow.
What is asset finance for the construction industry?
Asset finance is a finance option which allows a business to acquire much-needed assets and equipment without having to pay upfront. Instead of buying the asset straight out, you will pay a regular amount to use the asset over an agreed period, avoiding the full cost of buying outright.
Waiting until you’ve got enough cash upfront to purchase an asset can slow down your business growth, and can make day to day operations much harder than they need to be. Asset finance allows businesses within the construction sector to obtain assets and benefit from these assets without paying for them up front and in full, which frees up cash for use in working capital.
What are the benefits of asset financing for the construction sector?
There are a number of benefits of asset financing, such as:
– The facilities provided by most funders will not affect your bank borrowings.
– In contrast to traditional loans, asset finance could actually make it easier to raise funds for additional finance needs.
– Avoiding paying for an asset outright, and spreading the cost instead, can help maintain a healthy cash flow for your business, and maintain control over working capital.
– Asset finance allows you to grow without the limits of saving up to purchase an asset. It means you can access the latest equipment and technology when you need it, giving you an edge over your competitors.
Which construction assets can be financed?
Asset finance allows you to build for the future and ensures that you are properly equipped with the assets you need for growth. Typical construction assets that can be financed include:
- Demolition equipment
- Site plant
Is my construction business eligible for asset finance?
If you have a business that can meet its financial obligations, then you are eligible for asset finance.
However, finding the best asset finance options with the most competitive rates can be time-consuming and complicated. That’s why it is always a good idea to speak to an experienced financial facilitator who is well-versed in asset finance and has an extensive network of asset finance providers. For example, PMD works with around 100 asset finance providers who all specialise in either certain industries or asset types. These funders all provide specific facilities that will not affect your bank borrowings.
How PMD can help with asset finance for the construction industry
PMD takes the hard work out of securing business finance, liaising with 150 lenders on your behalf to ensure the best possible terms are secured, leaving you free to focus on running your business.
If you work in the construction sector and are considering asset finance as a business funding option, get in touch today to see how PMD can help.