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Why We Love Asset Lending

Playing a vital role in the growth of small businesses right across Australia, asset lending is a solution you should look into if you want to accelerate profits and broaden your market appeal. Here’s why asset lending is a wise move for many business owners, and how it can help strengthen your operations.

What is asset lending?

Asset lending is a type of business loan that uses an asset – whether it’s a piece of IT hardware or heavy farm machinery (and everything in between) – as collateral if you can’t afford to purchase it outright. Because many small businesses and startups don’t have the finances to buy all their equipment immediately, asset lending allows them to get what they need when they need it.

Asset lending is also a valuable tool for growing businesses. For example, if a café owner has already established a presence in one location but sees an opportunity for a franchise in a different part of the city, they can use existing company assets to secure asset funding for the new establishment’s equipment.

Benefits of asset lending

Asset lending is available to businesses across all industries. Whether you operate in the construction sector, IT, farming or hospitality, asset lending can be an invaluable source of funding to get your business off the ground – or to grow even further.

Here are some examples of the types of equipment you could buy with asset lending:

  • Company vehicles to expand your corporate fleet.
  • Kitchen upgrades for your refurbished restaurant or café.
  • Heavy machinery for commercial construction firms and mining operations.
  • Tractors and harvesters for farm managers.
  • Physical on-site servers for your IT department.

If you are unconvinced about why asset lending may be preferable to a typical business loan, here are some hard-and-fast facts:

  • Asset-based loans are generally easier to acquire than other forms of lending, such as unsecured loans and lines of credit.
  • They often come with a lower interest rate compared to typical business loans.
  • There are usually fewer stipulations (covenants) with this type of loan.
  • The collateral (i.e. the asset) makes the loan less risky for the lender, so they may be more willing to provide the funds even if you’ve had cash flow troubles.
How Nero can help strengthen your business

At Nero, we are experts at providing financial advice and helping business owners invest wisely at the right time. Whether that’s for a vehicle loan, commercial property loan, or an asset and equipment loan, we can help you find the best solution for your needs.

“Asset lending is an often-overlooked lending option for businesses,” says David Crook, Managing Director at Nero Financial. “Especially for owners who want to expand their operations or start a business from scratch, asset lending is a smart way to get the funding you need with the collateral being the asset itself. It just makes good business sense.”

Want to grow your business with the right asset lending solution? Contact Nero Financial today or call 1300 025 949 to find out how we can help you get the right funding.