Which assets are eligible for finance?

What is an asset?

In financial and accounting terms, an asset is considered to be any resource owned either by an individual, business or entity that has economic value. It can be something that holds value or produces value.

When it comes to asset finance eligibility the asset in question must be able to be converted into cash.

Examples of Assets

There are many different types and examples of assets. Some of the most common assets are houses, real estate, and vehicles. But even financial investments, machinery, equipment, and other contents can be considered as assets both for use as collateral/security and for asset finance eligibility.

The Value of Assets

In general, the value of an asset is determined by their market value should they be sold. However, other factors can contribute (negatively) to its value. For example, any debt owed for which the asset is acting as security for is deducted from its value.

Balance Sheet Assets

Every business accountant will maintain a balance sheet for your company. This tool is used by accountants to list all of your assets and liabilities.

When you’re looking to use an asset as collateral for financing a loan or checking whether a particular asset is eligible to be financed itself, the asset will need to be included in your balance sheet, though there are some unique circumstances and asset classes where this is not the case.

What can I use asset finance for?

One of the most common questions we receive is what one can use asset finance for. Does asset finance include cars and vehicles or just property and real estate?

Asset finance can be used to buy a wide variety of assets. This can include hard assets like vehicles, machinery and equipment, and in some cases  soft assets that are less durable, such as IT technology..

As a general rule, lenders want to know that the asset is something identifiable in that it can be quantified, durable in that it retains value, and saleable so that, if necessary, it can be sold for cash.

There are also a number of different assets that can be used as collateral. This can include bank savings deposits and/or financial investment accounts. Even future paychecks and invoices can be used to finance loans, though this takes us into a whole different category of financial instruments.

Who is eligible for asset finance?

Small, medium, and large sized businesses are all able to apply for finance. Start-ups might need capital to fund growth while larger organisations may need a solution for cash flow issues.

Your asset finance eligibility will depend on a number of factors, not least of which is the type of asset you’re financing. The ScotPac team have worked with numerous clients across Australia, and in a number of industries. So, if you’re wondering what your asset financing options are, we’re here to help.

About ScotPac

Our tailored and flexible asset finance solutions are designed first and foremost to put your business ahead of the pack. We’re help you secure funding for new, used, local and overseas assets. In fact, you might just need to replace or upgrade an asset already on your balance sheet.

We work with you to understand your needs and help provide expert advice drawing on our many years of experience to find the working capital solution that meets your needs.

Provider of highly capable products

Thanks to our many years of industry experience, our capability in providing effective financial facilities and products is unmatched. Whether your organisation is simple or highly complex, we can help ensure that your best positioned to grow and succeed.

Think of us as the fuel to get your business going.

Partners, not just clients

Our clients tend to stick with us for years, and that’s because we view them more as partners than anything else.

To read some of the success stories and case studies, make sure to visit our website. Alternatively, check out the reviews on Trust Pilot. Here are just some of the stellar testimonials our past clients have provided about us.

“I have always received great professional service… We look forward to working with ScotPac as our business expands.”

“ScotPac has done [an] outstanding job of opening up my cash flow avenues… [and] helps me sleep at night knowing that I’m covered…”

“I have been working with ScotPac for many years and I am more [than] happy with how the service is and how it works for my company…”

Find out more about our asset finance eligibility criteria and our host of other financial solutions today!