Asset finance & Industry 4.0: investing in technology upgrades for UK businesses

23 Apr 2024

Learn about the emergence of Industry 4.0 and how asset finance can help your UK business embrace innovation.

Asset based lending

For businesses seeking asset finance, Industry 4.0 offers many new opportunities and challenges to improve operational efficiency. Here’s how your business can successfully navigate the rise of Industry 4.0 and leverage asset finance solutions to upgrade your digital infrastructure. 

What is Industry 4.0?

Industry 4.0 refers to the digitisation of manufacturing processes, driven primarily by modern technologies. Tools like the cloud, machine learning, and AI enable significant improvements in the manufacturing industry, such as automating traditionally manual processes and optimising interactions between human teams and machines. 

How does Industry 4.0 impact asset finance?

The integration of modern digital technologies positions Industry 4.0 to fundamentally transform how assets are acquired, financed, and managed. 

Let’s take a look at the top impacts of Industry 4.0 on asset finance and its influence on your business:

  • Flexible financing models: Traditional asset financing often relies on fixed-term loans or financing. Industry 4.0 allows for real-time monitoring of asset performance, usage, and maintenance needs. In turn, your business is enabled to implement more flexible financing models that match the actual performance or utilisation of an asset. These models align the interests of asset finance providers and borrowers. 

  • Technology and infrastructure upgrades: Though Industry 4.0 provides your business with more flexible financial options, it also poses a significant investment challenge. Industry 4.0 requires you to invest capital in end-to-end upgrades to your technical infrastructure, from an optimised digital user experience to comprehensive back-end cybersecurity. If you want to upgrade your technology and infrastructure, you may need to rely more heavily on asset finance to fund your digitisation efforts and investments.

  • Enhanced decision-making: Industry 4.0 facilitates the use of advanced data analytics, machine learning, and AI, ultimately enhancing your decision-making capabilities. By analysing vast amounts of data collected from your portfolio assets, you can gain a more thorough understanding of your asset performance and current risk factors. From a financing perspective, Industry 4.0 can help you provide clear proof of your financial stability to lenders and other finance providers. Additionally, AI-powered algorithms can automate credit scoring, portfolio management, and risk mitigation strategies, enhancing the efficiency of lending decisions. 

Preparing for Industry 4.0 with Funding Options by Tide

Gearing up for Industry 4.0 requires your business to get serious about technological upgrades. 

For example, by purchasing new machinery, your business is able to deliver higher outputs and become more efficient. Asset finance not only helps you make these purchases, it also enables you to spread the cost of machinery over a longer period. This type of financing typically requires an upfront deposit and there is usually less flexibility with early repayments when compared with other forms of financing.  

Digitisation is no small task, but it is necessary to keep up with competitors in today’s markets. Finding asset finance providers that understand the importance of technological investments can help you bring your business into the modern era of Industry 4.0.

At Funding Options by Tide, our brokerage platform can connect you with more than 120 lenders across the UK. Funding Options by Tide aids you in finding lending solutions that align with your financial needs, as well as with making informed borrowing decisions. 

Get started with Funding Options by Tide.

Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business and personal credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.

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Funding Options

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Business Finance

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