The new tax year has brought very real challenges for SMEs across the country. The national minimum wage increase combined with the increase in National Insurance Contributions have increased the economic strain on many small and medium sized businesses. The wider economy is affected too, with many companies having concerns about economic growth leading to a slowdown in orders, whilst the potential global trade war threatens to lower growth expectations and cause further inflation increases.
At Genesis our goal is to offer financial support to the small and medium businesses that need it but are often overlooked by other lenders. Asset refinance is proving to be an invaluable way for businesses to handle the different situations they find themselves in.
Here are our top three ways that Asset Refinance can help businesses in the current economic climate:
Managing Cash Flow Challenges
The most critical issue any business can face is a cash flow shortage, often caused by delayed or reduced customer orders at a time of increased costs. Refinancing existing assets—whether fully owned or currently financed with available equity—can provide a vital liquidity boost during challenging times. This is an excellent way to unlock the value held in equipment (vehicles and machinery), to provide an injection of working capital.
Covering Unexpected Liabilities
When faced with a significant expense—such as a large tax bill from HMRC—asset refinancing can be an effective solution to free up the necessary funds quickly. We can provide funding to cover HMRC arrears which can help companies secure Time To Pay Arrangements.
Investing in New Equipment
Businesses looking to acquire new machinery or equipment may require a deposit or additional capital to cover installation and commissioning costs. Refinancing existing assets can help release the funds needed to move forward with these investments.
Asset Refinance typically offers fixed monthly repayments over a longer term compared to many unsecured loans, leading to lower comparable repayments which helps to protect cash flow.
If you know a business that could benefit from asset refinancing, get in touch with us today.
