Asset Financing
Trade asset financing, particularly in the tradesmen sector (trade asset financing), assists tradesmen and businesses in acquiring the necessary funds to purchase important equipment and assets like specialized tools, machinery, and vehicles. This type of financing offers flexible choices and makes it easier for them to afford buying necessary tools and equipment without having to make a big upfront payment.
Tradesman Assets
Almost any asset relevant to tradesmen, whether new or used, can be financed. Some typical assets include:
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Specialized trade machinery (eg. cranes)
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Trade vehicles (eg. vans, trucks, trailers)
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Equipment specific to trade operations
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Plant equipment necessary for trade tasks
Hire Purchase
Hire purchase is a financing option available to tradesmen, enabling them to buy equipment or machinery by making an initial down payment and then paying the remaining cost in instalments over a fixed period. During this period, the tradesman has possession of the equipment immediately and ownership remains with the vendor until final instalment is made with a nominal purchase fee.
Lease
In trades asset financing, the lease option enables tradesmen to obtain essential assets such as equipment and machinery by making regular lease payments over a predetermined period of time. At the end of the lease term, tradesmen usually have the option to either return the asset, purchase it at its residual value, or extend the lease for an additional period.
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What types of coverage do small businesses and tradespeople typically need?Small businesses and tradespeople often require a combination of coverage, including public liability insurance to protect against third-party injury or property damage claims, employer liability insurance for employee-related risks, tools and equipment insurance for asset protection, and personal accident coverage for financial support during recovery from injuries.
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How can I determine the right level of coverage for my trade and business?The appropriate level of coverage depends on factors such as the nature of your trade, the size of your business, and the potential risks involved. Consulting with insurance professionals, assessing the specific needs of your trade, and considering factors like the value of tools and equipment, the number of employees, and the scope of your projects can help determine the optimal coverage for your business.