In the world of business, assets can be categorised in different ways. An asset is something that has value and is owned by an entity. Assets add to the net worth of the entity that owns it.The entity that owns an asset can be a person, a company or any other organisation. Assets can further be divided into movable and immovable assets. Movable assets are those which are movable stocks such as money, shares, furniture, gold, jewels, etc.
Movable asset finance can help a business grow within its cash flow constraints and purchase expensive movable assets. Financing or leasing assets is also the easiest and most affordable way for a business to minimise the impact on its cash flow.
Movable finance is available from many lending institutions. Like any credit, it is evaluated based on whether the business can afford the asset it wants to buy.The lender needs to know that the business can afford to pay back the loan. Decisions made depend on your business, the industry in which it operates, its income and credit gearing. If it is a franchise, lenders would evaluate what type of franchise it is and what support the franchisor provides.The only pitfall a business owner has to consider is that they will have to account for asset depreciation over time, maintain their fleet and manage cash flow implications in terms of repaying the debt, even if the business experiences a financial dip.
Under movable asset finance, comprehensive insurance for the asset is required for as long as the asset is financed.This prevents the business owner from being exposed to the financial risk of having to pay for the replacement or repair of a financed asset that is stolen or accidentally damaged.
The above is what movable asset finance is all about.