The practical answer
Consider remaining useful life, expected maintenance and replacement plans alongside affordability and lender terms.
A longer term can lower instalments while increasing the time the company is committed. It may leave repayments outstanding when the asset needs replacing or expensive repairs.
Compare the expected settlement at the planned sale date with a realistic resale value. The cheapest-looking monthly payment is not necessarily the best match for an ageing vehicle or machine.
Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.
What should I do next?
Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.
Read: Compare finance structures →