Finance the Asset. Understand the Commitment.

What is asset financing?

Asset financing is a way to arrange funding for an eligible asset under an agreed financing structure. Depending on the product, the lender may consider the asset, the applicant’s repayment capacity and contractual terms relating to ownership, security, insurance, valuation, delivery or other responsibilities. None of these details should be assumed until LMK has confirmed its policy and any proposed agreement.

Plan around what the asset will do

Before enquiring, ask whether the asset is essential, how it will be used and whether its expected benefit justifies the borrowing cost. For a business asset, estimate the revenue, operating savings or capacity it could support. For a personal asset, check that regular repayments fit comfortably alongside essential household costs.

Key questions to ask

• Is the asset type eligible for LMK financing?
• Must I contribute part of the purchase price?
• Who legally owns the asset at each stage of the agreement?
• Is insurance required, and who arranges and pays for it?
• Are there valuation, registration, supplier or transfer costs?
• What happens if the asset is damaged, lost, sold or becomes unusable?
• What happens to the asset and the agreement when payments are completed?

Our asset financing enquiry process

Tell us the purpose. Explain what you intend to acquire and the approximate amount. Discuss the asset. LMK advises which asset and supplier details may be required. Review the proposed arrangement. Consider financing amount, contribution if any, term, costs and security or ownership conditions. Decide with the full information. Seek clarification and read the written agreement before proceeding.