Public sector organisations often face significant funding constraints. This can make it difficult to keep pace with the latest technology, maintain their infrastructure and meet the needs of their stakeholders.
Asset finance provides a solution to these funding challenges, allowing public sector organisations to acquire the assets they need without having to pay the full cost upfront. Spreading the cost of assets over a period of time means capital can be used to fuel growth in the organisation or kept in the bank to improve financial stability.
Education
Healthcare
Social care
Housing
Local authorities
Charities
In 2024 the UK government adopted new accounting rules that enable Local Authority-maintained schools*to finance assets and equipment via fixed-term finance leases. This enables schools to spread the cost of new equipment over time, reducing upfront costs, conserving cash, and improving the balance sheet by spreading fixed repayments over the useful life of the assets.
Examples of assets that can be leased by schools include:
*Fixed term finance leases on the above assets will be available to academies from 1st September 2024.
Healthcare organisations can use asset finance to acquire medical equipment, vehicles and property with minimal upfront costs. Benefits include flexible payments, preservation of cash, tax savings, and access to the most up-to-date equipment. The impact will lead to improved patient care, streamlined organisational efficiency and greater overall success.
Examples of assets for the education sector include:
Asset finance can be an attractive option for organisations in the housing sector, providing a range of benefits including improved cash flow management, access to larger amounts of capital, flexible repayment options, tax benefits, and the ability to preserve existing credit lines.
Examples of assets that can be acquired using this type of financing:
By utilising financing, local authorities can manage their cash flow more effectively, access larger amounts of capital, and preserve their existing financial resources.
Examples of assets that can be acquired using this type of financing:
Funding is crucial for charities, but many do not realise that they may be able to access larger amounts of capital, and preserve their existing resources with bespoke finance solutions.
Public sector asset finance can be used to finance a wide range of assets, including vehicles, machinery and equipment, property, and IT equipment. These assets can be acquired through a variety of financing options, such as hire purchase, leasing, and refinancing.
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The approval process for public sector asset finance can vary depending on the lender and the specific financing product. Typically, the approval process can take anywhere from a few days to several weeks. However, the process can be expedited by providing all the required documentation upfront and working with an experienced asset finance broker like Bluestone.
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The eligibility criteria for public sector asset finance can vary depending on the lender and the specific financing product. However, some common eligibility criteria include having a good credit score, having a solid financial track record, and being able to demonstrate the ability to make repayments. The specific criteria will depend on the lender and the product.
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Asset finance can help public sector organisations to improve their financial sustainability by providing them with the ability to acquire assets without tying up large amounts of cash upfront. This can help to improve cash flow management and preserve existing financial resources. Additionally, asset finance can provide tax benefits and help organisations to manage their balance sheet more effectively. Finally, asset finance can enable organisations to acquire the assets they need to deliver services to their communities, which can help to improve the overall effectiveness and efficiency of public sector operations.
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