Navigating the Maze of Asset Finance: Your Essential Checklist

In the realm of business, staying ahead often requires critical investments in assets. Whether it’s upgrading technology or expanding your fleet, Asset Finance can be a game-changer. Universal Business Group is thrilled to present a thorough checklist and guide that demystifies the process of securing asset finance.

📋 Asset Finance Checklist

1. Identify the Assets Required
   • Clearly outline what assets you need and for what purpose.
2. Quantify the Investment
   • Determine the total cost of acquiring these assets.
3. Assess Business Cash Flow
   • Ensure you can meet repayments without straining your finances.
4. Type of Asset Finance
   • Lease, hire purchase, or chattel mortgage? Know the differences and benefits.
5. Research Providers
   • Bank, non-bank lenders, or specialist asset finance companies. Choose wisely.
6. Examine Interest Rates & Fees
   • Factor in APR, arrangement fees, and other potential costs.
7. Compile Financial Documents
   • Profit & Loss Statements
   • Balance Sheets
   • Cash Flow Projections
8. Assemble Business Information
   • Business Plan
   • Asset specifications & supplier quotes
9. Obtain Credit Score
   • Check your business credit score, as it will influence your terms.
10. Consult with Financial Advisor (Optional)
    • Gaining expert insights can often illuminate the best course of action.
11. Submit Application
    • Ensure you fill out the application accurately and attach all necessary documents.
12. Wait for Approval
    • Keep lines of communication open for any further information the lender may require.
13. Review Finance Agreement
    • Thoroughly read terms, conditions, and any fine print.
14. Finalise the Deal
    • Sign the agreement and meet any upfront costs, if applicable.
15. Receive or Procure Assets
    • Once funds are released, you can go ahead and acquire the assets.

Things to Note

Asset Lifespan vs. Loan Term: Ensure the finance term doesn’t exceed the useful life of the asset. You don’t want to be paying off an asset that’s already obsolete.

Financial Advisement: A quick consult with a financial advisor could offer valuable insights into tax implications, repayments, and whether the type of asset finance selected is indeed the best option for your business.

Review Terms Carefully: Don’t rush through the agreement. Make sure you’re clear on every detail, including what happens at the end of the term and any additional costs that may apply.

Universal Business Group is your go-to resource for navigating the complex world of Asset Finance. With a multitude of options available, getting it right is crucial. We’re just a call or click away to guide you through it.

Get in touch today at (08) 9258 8137 or email us at admin@universaltaxation.com.au. Your assets are your business’s future—let’s invest in them wisely! 📞📧