We know how vital asset finance is to helping businesses to drive growth.
That is why we have rounded up the most frequently asked questions about our finance solutions, so you can get the answers you need.
Please also feel free to contact our expert finance team.
We will always be very pleased to answer any questions you may have.
How is asset finance different to other forms of funding, say a bank loan or an overdraft?
Unlike overdrafts, asset finance is not repayable on demand. It’s also a form of secured loan (the asset is our security) so our lending criteria is often more flexible than a bank loan.
Can I refinance the equipment that I already own?
Yes you can, however there are certain criteria surrounding the age and condition of equipment that we’ll refinance. (Such as the type of equipment, and the date that you purchased it.)
Please call and speak to one of the team, who will guide you on how to release the capital tied up in your assets.
Will my payments increase if inflation or interest rates rise?
No – your monthly payments are fixed and are unaffected by interest rate rises.
Will I need to pay a deposit?
Not necessarily, usually we only ask for a nominal amount at the outset of your finance agreement, equivalent to a monthly payment. This means you can start using the equipment straight away and generating profit from it before the next payment is due.
Can I borrow up to 100% of the value of the asset?
Yes – on new assets, loan to value (LTV) can be up to 100% of the invoice amount excluding VAT, subject to credit profile.
How much can I borrow?
The amount you can borrow will depend on your business and time trading. However, as a general rule – we finance equipment with a value of £1000 upwards.
What types of businesses do Propel lend to?
We lend to all types of businesses.
It doesn’t matter whether you’ve been established a few decades or just a few months – we can provide finance for businesses of all sectors, sizes and stages.
They are all united by one thing – the ambition and drive to succeed.
Would my customers be better off going to their bank for financing?
Not necessarily. Banks may not be able to provide a complete solution and often look for higher levels of security, asking for large deposits or making charges on assets or property.
By leasing or hire purchase, your customers still have the option of going to their bank for working capital requirements and other business purposes. We also pride ourselves on speed and service.
Will I need a Consumer Credit License?
The Financial Conduct Authority have provided firms with a helpful decision tool to determine if you need their permission.
Please visit https://www.fca.org.uk/publication/publications/decision-tool.pdf or contact the Financial Conduct Authority on 0300 500 0597 to determine your firm’s registration requirements. We are not able to provide advice on FCA permissions.
Why should I sell my products on asset finance?
Selling on finance makes your products accessible to a wider range of customers.
It allows customers to gain the advantage of using the equipment you supply, without the need for a large, upfront upfront capital outlay.
Asset finance also gives you the opportunity to increase your sales process and ensures that you get paid on time, every time, whilst creating long lasting customer relationships.
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If your question is not in the above list, please call us on 01633 415222 option 2 and we will be happy to assist you or alternatively fill in the form below and we will reply to you.
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