Large and expensive materials, machines and vehicles are a significant investment. An investment that you can't always afford without funding. More about the best-known forms of object financing in this blog.

What is object financing?

Object financing is the collective name for business financing of objects. The financing is directly linked to the investment. This is therefore a financing per object. There are three known forms of object financing.

The best-known forms of object financing are:

— Asset leasing

— Real estate mortgage

— Factoring for debtors

Object financing through leasing or factoring

Which form of object financing best suits your business depends on the object. In most cases, a leasing company is sought for vehicles and large work equipment. This has the advantage that you actually rent the object. This can be cheaper than buying a vehicle, as maintenance and repairs are also included in this lease price.

There are special factoring companies for debtors. These parties' buy 'your invoices and they are then paid out to you within 24 hours. This stabilizes your cash flow and improves your liquidity. Factoring companies can also take care of the entire debtor management and then ensure that all invoices are paid (on time). This is great if you don't have time to keep track of this and you want to stabilize your cash flow. However, when debtors are managed by a factoring company, this also has two disadvantages. The first is that your customers know that you are using such a party. The other disadvantage is that the factoring company contacts your customers when an invoice is not paid on time. This can be impersonal and is not always appreciated by your customers.

Financing objects with a business loan

But what if you have multiple objects that you want to finance at the same time? Then it can become a red tape if you transfer everything to separate, more specialized parties. That's why a business loan is perfect if you want to finance multiple objects. With one loan, you can make multiple investments.

Parties that offer a business loan or business loan are diverse. From banks to crowdfunding platforms and from direct lenders to credit unions. Each party has its own terms and costs. That's why it's good to research which party is best for you, and your company.

Business loan via a direct lender

Direct lenders fall under the heading “alternative (or non-bank) lender”. Direct lenders are known for being able to complete the financing within a few days. In addition, they look at the current cash flow. Based on that cash flow, it is analyzed whether you are eligible for a loan. This way of analysis means that more entrepreneurs are eligible for a business loan than at a bank, where you have to provide many more securities.

Swishfund is a direct lender. You can apply for financing from us if you have been registered with the Chamber of Commerce for at least 12 months and have a minimum annual turnover of €50,000. Start a request? You can easily do that online and is completed within 10 minutes.