ASSET FINANCE
FINANCING PRODUCTIVE ASSETS FOR BUSINESS GROWTH
CAPITAL FOR PRODUCTIVE INVESTMENT
Businesses often need to acquire essential machinery, equipment, vehicles or specialist systems before those assets begin generating additional revenue or operating savings.
Purchasing an asset entirely from existing cash may reduce the liquidity available for inventory, employees, suppliers, maintenance and other operating requirements.
Asset finance may allow an eligible business to place a productive asset into use while spreading its cost over a period more closely aligned with the asset’s economic life and contribution to the business.
ATIB considers the asset’s purpose, value, useful life, supplier, expected commercial benefit and the borrower’s wider repayment capacity when assessing whether asset finance may be appropriate.
ASSETS WE MAY CONSIDER
Subject to product availability, asset eligibility and credit approval, ATIB may consider financing identifiable productive assets serving a credible commercial purpose.
FINANCE ALIGNED WITH THE ASSET’S ECONOMIC LIFE
Asset finance should reflect how the equipment will be used, how long it is expected to remain economically productive and how it contributes to the borrower’s capacity to repay.
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A clearly identifiable productive asset
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Commercial use and business benefit established
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Asset value and useful life assessed appropriately
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Financing period aligned with realistic economic life
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Repayment supported by sustainable business cash flow
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Appropriate ownership, insurance and security arrangements
ATIB may consider the purchase price, supplier, asset condition, valuation, expected utilisation, maintenance requirements, marketability and contribution to business cash flow. The asset may provide additional credit support, but a financeable asset does not replace the need for a viable borrower and credible repayment capacity.
PRODUCTIVE ASSETS WITH A CLEAR REPAYMENT PATH
Asset finance can help a business increase capacity, improve efficiency or acquire essential equipment without unnecessarily exhausting the liquidity required for normal operations.
ATIB seeks to finance eligible assets that serve a credible commercial purpose, remain appropriate to the borrower’s financial capacity and contribute to sustainable cash generation or identifiable operating benefits.
Wider investment programmes may be better suited to Term Loans, while operating liquidity may require Working Capital Finance. International acquisition of machinery may connect with Import & Export Finance, and an existing asset-related obligation may require Refinancing.