Forestry Finance

Forestry Finance – Companies invest large sums of money in order to keep their businesses running. In an ideal world there would always be enough money coming in from services to pay for daily operations. Because this is not always the case and it is not feasible to spend money extravagantly it has made finance become one of the most important aspect of a business.

Asset Finance Comes In Many Forms

Hire Purchase, that delivers ownership when all payments due including a small option fee at the end have been made. You can choose to reduce your monthly payments by paying a larger deposit or by opting for a ‘balloon payment’ at the end of the agreement.

Leasing, where ownership stays with the finance company and you simply pay for the use of the asset over the agreed period. At the end of the agreement, you sell it to a third party on our behalf and you receive a fixed percentage of the proceeds from the sale of the machine as a ‘rebate of rentals’.

It is even possible for the finance company to take the risk of what the machines you need today will be worth when you come to sell them in the future away from you by using a ‘residual value’. This approach means you can acquire the latest generation forestry machines now and the rentals you pay during the finance agreement are set according to the asset’s anticipated future value as judged by the finance company.

With all the asset finance options available to you it is important that you work with an asset finance company that really knows and understands the sector.

Working with people that truly know what drives the financial performance of your forestry business, understand how you use the equipment in the forest and how the equipment value depreciates over time means you can get the right asset financing solution for your business. A forestry sector solution.