Asset Finance

Although Merchant Capital does not offer asset financing, this page is a great informational resource. Asset-based finance can be a crucial boost for your business as you work towards achieving your ambitions. But what is asset-based finance, what are the types, and where can you get it?

What is asset finance?

Asset-based finance is a type of lending that uses the borrower's assets as collateral for the loan. This type of financing is often used by businesses to acquire equipment, vehicles, or other types of property. Asset-based finance can be used to finance a wide variety of business needs, including inventory, working capital and expansion.

The asset-based finance industry has grown significantly in recent years, as more businesses have turned to this type of financing to meet their funding needs. Asset-based finance can be an attractive option for businesses because it offers many benefits, including:

Access to capital: Can provide businesses with access to the capital they need to grow and expand.
Flexibility: Can be customised to meet the specific needs of a business.
Asset protection: Can help businesses protect their assets from creditors in the event of a default.

Asset-based finance agreements typically involve the borrower pledging their assets as collateral for the loan. The lender then has the right to seize and sell the assets if the borrower defaults on the loan. This type of financing is often used by businesses that have high-value assets, such as equipment or vehicles.

Remember, asset-based finance can be a helpful tool for businesses that need access to capital. However, it is important to understand the terms of your loan agreement and the risks involved before signing on the dotted line.

Types of asset finances to consider

There are many different types of asset-based finance, including:

Equipment financing: A type of asset-based finance that is used to purchase new or used equipment.
Vehicle financing: A type of asset-based finance that is used to purchase new or used vehicles.
Real estate financing: A type of asset-based finance that is used to purchase, develop, or invest in real estate.
Invoice financing: A type of asset-based finance that allows businesses to borrow against their outstanding invoices.

Asset-based finance can be obtained from a variety of sources, including banks and credit unions. These bigger players, though, can make the process long and tedious.

Merchant Capital is your source of alternative business funding – we’ll keep things quick and easy, with less stringent eligibility requirements, and more flexible terms, so you can get back to advancing your ambition, with the loan that suits your specific needs.

Where to get asset finance?

Come to Merchant Capital. We want to make the process of financing asset purchases simple. You can access the finance you need without needing to put up your assets as collateral as you would with traditional asset finance, perfect for small businesses in South Africa.

Here’s how Merchant Capital can help you advance your ambition:

Smart lending – Bespoke cash flow-friendly advances to suit your business needs and specifications.
Transparency – Openness and honesty at all times, especially when it comes to timelines, costs, and everything in between.
Efficiency – From approval to analysis and then pay-out, we’ll make it happen in 48 hours, and keep you posted at every step.

Read on for more about the benefits of the SME cash advance.