05 Oct The top 5 benefits of financing your business equipment
Finestream have been helping businesses thrive for the last 10 years. Over this time we have discovered many benefits for businesses who choose to finance their equipment. We have narrowed the list down to the top 5 benefits of financing your business equipment. Let’s get into it!
#1. Stay up to date with the latest tech
In most cases it’s vital that you’re working with the latest tech in order to maximise productivity and your output. However, as we all know, it’s not cheap to buy the latest gear! Equipment financing makes it possible for those businesses that might otherwise not have the capital needed to buy outright. There is also the bonus that leasing can allow you to update to new tech once your leasing term ends with relative ease and at a low cost.
#2. Consistent cash flow
Purchasing equipment for your business upfront can cause drastic fluctuations to your budget and leave you with cashflow issues, among other things! However, when you finance your new equipment you have the beauty of easy budget predictions because you know exactly how much you’re paying each month, this helps you maintain a consistent cashflow.
#3. Maintain working capital
Especially for small and medium-sized businesses, paying for equipment upfront is risky if it leaves you with little capital. It could be devastating if any unexpected expenses hit your business without enough working capital in the bank.
Choosing to finance lets you keep your capital in the bank, giving you confidence that if anything happens, you have the financial means to work through it.
#4. Tax benefits
There are different types of equipment financing that you could choose (we will go into some detail later in the blog), each comes with its own taxation benefits. Most businesses may be able to claim depreciation and interest paid, plus other potential deductions on the repayments themselves. It’s important to discuss with your accountant about what specific claims you could make.
#5. You can get approval quickly
The sooner you’re working with your new equipment, the greater your business output will be. And financing can really help speed up the entire process.
For example, when you choose to work with us here at Finestream the process is not only straightforward but also extremely fast:
- Contact us for free quote for your equipment finance
- Initial consult – apply for the financing
- Finestream go to work to compile your loan options
- Secondary consult
- Get approved (within 3-days)
- Sign the contract
- You can settle and pick up your new equipment
If you need some new equipment quickly we’ll help you secure financing in rapid speed, giving your business the means to excel.
One last note, depending on what you need, there are several different types of equipment financing, including asset leasing, chattel mortgages, equipment rental and cashflow funding.
If you’re interested in financing new equipment for your business, there are some things you need to know so we’re able to give you the best financing options catered to you. These include:
- Is the equipment additional or replacement?
- Which brand/model do you want/need and why?
- Have you considered used or refurbished equipment?
- Is this equipment required every day, intermittently, or seasonally?
So, there you have our top 5 benefits of financing your business equipment. There is a bit to think about here but we hope it’s been of value to you. If you have any questions about asset financing, or if you’re ready to take the next step, contact us and we can get the ball rolling and have your business dominating with the new equipment you need.