4 Best Asset Finance Options for Your Small Business
Small businesses are the bedrock of New Zealand. Upwards of 90% of all businesses in New Zealand fall under the ‘small to medium’ umbrella, proving that not only do small businesses drive our economy, but they also require the right financial options to get a leg up amongst stiff competition.
If you’re a small business owner looking for ways to expand your venture, you know all about that competition, and you might even be running up against a roadblock or two. That’s where asset finance comes in. Today, we’re unpacking your four best options in this space to help you pick the right policy for your needs.
4 Best Asset Finance Options for Your Small Business
Truck & Transport Finance
If your business relies on trucks, vans, or any kind of transport, this asset finance option helps you finance new or used vehicles without needing to pay for them outright.
Who is truck and transport finance best for?
- Freight and courier businesses
- Construction companies needing heavy-duty vehicles
- Retailers that need their own delivery trucks
In short, this is perfect if you need to upgrade your fleet or expand your transport options without tying up all your working capital. Keeping the cash free-flowing is extremely important, especially when you’re in your growth stages and need to account for unexpected bumps in the road (both literally and figuratively).
Plant & Equipment Finance
Depending on the kind of industry you’re in, you might be the kind of small business that relies on equipment for your day-to-day work. But what happens when you’re getting off the ground or want to expand your existing operations? What happens if you need a new digger to serve larger clients? Or need an on-site addition to your manufacturing setup to expand your product line?
This is where equipment finance comes in. Plant or equipment finance helps you to get all of the tools you need to keep your business running smoothly, all without blowing your budget.
Who is plant and equipment finance best for?
- Tradies and construction businesses
- Manufacturers and engineering firms
- Farmers needing new machinery
Consider the moments when you need to replace old gear or invest in something to kick productivity up by a few notches; this is the kind of finance that can give you that upgrade flexibility without enduring the stress of a big upfront payment.
Working Capital Finance
If you’ve ever felt the pinch of waiting for a client to pay an outstanding invoice, then you already understand how important working capital finance can be. Having a steady cash flow while running your small business is vital to keep the gears turning, but it’s not always possible to have that cash when you’re in the early stages.
Working capital finance lets you borrow against your existing assets to keep things ticking over.
Who is working capital finance for?
- Seasonal businesses that see big swings in cash flow
- Companies wanting to expand but needing extra funds to get it done
- Any small business facing short-term cash flow issues
The key is to ensure you have assets to anchor the policy, but when you need some financial breathing room, this can be a fantastic option.
Commercial Vehicle Finance
Finally, we have commercial vehicle finance. If you’re running a modern small business, there’s a strong chance you need some kind of transport. Whether that be a branded commercial fleet for your sales team or site equipment for construction work, commercial vehicle finance lets you get the wheels you need without a massive upfront cost.
Who is commercial vehicle finance for?
- Businesses with sales reps or service teams that need to be on the road
- Companies needing a fleet of work vans
- Warehouses requiring forklifts for daily work
How Does Small Business Asset Finance Work?
Now, if you’re new to asset finance, you might be wondering how this process actually works. Don’t worry, it’s pretty straightforward. Here’s a quick rundown to get you started:
- Decide what asset your business requires and understand the capital required to balance against it. It might be a truck, a piece of machinery, or even just some extra cash to keep things humming.
- Find the right finance option. This is often the most intimidating part, especially for new small business owners, but as you can see, there are a number of different options. This is where partnering with a broker or asset finance company like ours can be a major help.
- From there, it’s just a matter of applying for the funding and securing your cash or assets on the agreed-upon terms.
In summary, small business asset finance has fed many businesses like yours in their growth stages and will continue to do so for decades to come. This is a valuable and vital tool you can use to skyrocket your success, one step at a time.
Breaking ground on your small business idea? Talk to the asset finance specialists.
Here at GVK Finance, we’re proud to work with small to medium-sized businesses all over New Zealand. Whether you need to purchase business vehicles or drive growth by freeing up essential capital, the GVK team can pair you with the perfect finance option to suit your needs.
Get in touch with the team to help you fund the assets that will grow your business, one vital step at a time.