A Merchant’s Advantage: Harnes Asset Finance for Business Growth

In today’s rapidly evolving business landscape, access to flexible and efficient funding solutions is crucial for the growth and success of enterprises across various industries. As trusted financial advisors, accountants play a vital role in guiding their clients towards the most suitable financing options. Asset finance has emerged as a powerful tool that offers businesses the advantage to fund their operations, expansion, and innovation while preserving working capital. In this article, we explore the benefits of recommending asset finance products to clients and the advantages they bring in terms of variety and expert assistance.

Diverse Range of Business Products:

Asset finance encompasses a wide array of funding solutions tailored to meet the diverse needs of businesses. From equipment leasing and hire purchase agreements to chattel mortgages and commercial hire purchase, there are financing options available for almost any asset a business requires. By recommending asset finance, accountants can assist clients in selecting the most suitable product based on their specific circumstances, enabling them to acquire the necessary assets without straining their cash flow.

Advantage of Preserving Working Capital in Your Business:

One primary advantage of asset finance is its ability to preserve a company’s working capital. Instead of tying up substantial amounts of capital in outright purchases, companies can use asset finance to spread the cost of acquiring assets over time. By opting for asset finance, clients can allocate their working capital to other critical areas, such as business development, marketing, and talent acquisition, fostering growth and maintaining a healthy cash flow.

Business Flexibility and Scalability:

Asset finance offers businesses the flexibility to adapt and grow. Whether clients need to upgrade existing equipment, expand their fleet, or invest in new technology, asset finance provides a scalable solution. Clients can structure financing arrangements to match the lifespan of the asset or choose flexible terms that align with their business cycles. As accountants, recommending asset finance allows clients to leverage the scalability of these products, ensuring their funding aligns with their long-term growth strategy.

Advantage of Expert Business Assistance:

Navigating the complexities of asset finance can be overwhelming for many owners. Fortunately, there is a range of experts available to assist both accountants and their clients in understanding and implementing asset finance solutions. Collaborating with specialist lenders, brokers, and financial advisors, accountants can tap into their expertise and ensure that clients receive tailored advice and support throughout the financing process. These experts can assess individual needs, negotiate favorable terms, and provide guidance on the most suitable asset finance products available.

Tax and Accounting Advantage:

Asset finance offers several tax and accounting advantages that businesses can leverage. For instance, clients may be able to claim tax deductions on interest payments, depreciation, and maintenance costs associated with financed assets. Additionally, asset finance allows for simplified budgeting and forecasting as monthly repayments are predictable and can be structured to align with cash flows. By recommending asset finance, accountants can help clients maximize their tax benefits while providing them with more accurate financial planning and reporting.

Conclusion:

As trusted financial advisors, accountants have a unique opportunity to guide their clients towards suitable funding options that fuel growth and innovation. Recommending asset finance products can empower businesses with the flexibility, scalability, and working capital preservation they need to thrive. By exploring the diverse range of asset finance solutions available and leveraging the expertise of industry specialists, accountants can play a pivotal role in helping their clients secure the funding necessary to realize their business goals.

Incorporate asset finance into your advisory services and unlock a world of possibilities for your clients’ businesses.

Relevant Articles from our Catalogue

External Links to Consider

University of New South Wales – Podcast – The Business of Finance
Speakers include:
- Professor Nick Wailes, Senior Deputy Dean and Director at AGSM
- Camilla Love, (AGSM MBA Executive 2011), Managing Director at eInvest
- Associate Professor Elvira Sojli, School of Banking and Finance, UNSW Business School
Sydney University Course – Fundamentals of Equipment Leasing and Asset Finance Course

Be Careful:

The information provided in this article is for general guidance and informational purposes only. Accountants should seek professional advice and conduct thorough assessments specific to each client before recommending any financing options, including asset finance. Financial products and regulations may change over time, so it is essential to stay updated and consult with experts specialising in asset finance.

While asset finance offers benefits, it may not be suitable for every business. Clients should be aware of potential risks, including interest rates, repayment obligations, and cash flow impact. The writer cannot be held liable for any actions or decisions based on the information provided. Clients should consult their legal, tax, or financial advisors to evaluate suitability and implications.

Always comply with relevant laws, regulations, and professional standards when providing financial advice.