What is the definition of an asset?
The definition of an asset can be known as an object or a useful resource that is of value to a person. Assets can be owned by anyone, from an individual to a business, or even government. An asset can be anything from money to office furniture. Because of the range of what an asset can be, the definition can always be altered.
So, what is asset finance?
Putting an asset along with the finance side of things means you end up with asset finance. This is where you acquire the materials for a business using finance as the preferred payment method. This means businesses can spread the cost of an asset over a fixed amount of time. This is instead of paying upfront. This allows your business to have a weight lifted off its shoulders. This doesn’t just apply to the cash flow of your business, but your tax liability.
Asset finance benefits
Asset finance is something that every business should consider. This is because paying upfront and in full can be damaging to many businesses’ cash flows. However, asset finance allows you to take this cash and put it to other, better use in the business. For example, other larger projects in the company. It also provides an alternative line of credit, without you having to use up an existing one. Companies can also deduct 100% of their rental’s tax liability against their corporation tax bill. However, as well as the total amount payable, your VAT will be distributed monthly.
You also implement a recycling strategy, meaning you will always have the latest equipment. When working in a dental practice it’s essential to have the newest technology, and this will allow you to do so. You can stay one step ahead of your competitors.
If you would like any more information on what asset finance is here at WestWon Dental, then please don’t hesitate to get in touch with us on 01494 611 456 or alternatively email us on email@example.com