How much funding can my business receive through asset finance?

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How much funding can my business receive through asset finance?

The amount of funding your business can receive through asset finance depends on various factors, including the type and value of the asset being financed, the lender’s policies, and your business’s financial strength. In general, asset finance can provide funding for a significant portion of the asset’s value, often ranging from 50% to 100% of the asset’s value. However, it’s important to note that some lenders may have limitations on the percentage of financing they offer, and the exact amount you can receive will vary based on the specific financing arrangement and the lender’s assessment.

For example, if your business is seeking to finance a piece of equipment worth £100,000, a lender may offer to finance 80% of the equipment’s value, which would be £80,000. The remaining 20% of the equipment’s value, or £20,000, would be the down payment or equity contribution your business must provide.

It’s important to remember that asset finance differs from a traditional loan, and the financing amount is typically tied to the asset’s value. The lender may also consider other factors, such as your business’s financials, creditworthiness, and the specific terms of the financing arrangement when determining the funding amount. It’s recommended to discuss your business’s funding needs and asset finance options with different lenders to understand the maximum funding amount you may be eligible for based on your business’s circumstances.

How can Sterling Commercial Finance Help?

At Sterling Commercial Finance, we’ve been helping businesses access funding for over 20 years. Contact the team today to see how we can help your business.

Discuss your financial needs with a member of our team 0115 9849800 or email
Alternatively, complete our Online Enquiry Form.