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Businesses keen to grow can benefit from quality equipment that helps them run better businesses more efficiently – and for many people, that means being able to access finance, with friendly interest rates.

The flow-on effect of accessing all-important equipment finance is that businesses can actively grow, while still maintaining helpful cash-flow and healthy capital that protects them from the peaks and troughs of inevitable instability.

Choosing The Right Equipment Finance

Making a decision to take on any debt is a serious thing and needs to be well-considered and researched. Yes, the benefit of preserving your ability to put your hands on funds that keep day-to-day business operations ticking along smoothly is important, but by taking a strategic approach to accessing the right equipment finance, you can make sustainable improvements to your business.

With the right equipment finance helping your business build, you can:

  • Generate immediate income
  • Budget for repayments accurately
  • Maintain access to much-needed cash-flow
  • Experience the benefits of a pre-approved line of credit that’s there when you need it
  • Access stress-free, unsecured loans that don’t rely on your house as collateral
  • Minimise tax

What equipment can I finance?

If it is plant or equipment that can help produce business income, it can usually be financed.

Equipment items include:

  • Vehicles
  • Commercial vehicles
  • IT equipment
  • Dental & medical equipment
  • Engineering equipment
  • Office equipment
  • General business equipment

Used Equipment vs New Equipment

It’s important to note that used equipment of a certain age is also okay to finance, so to look at ways to trim your costs and save money on ongoing repayments, shopping around for quality used equipment, rather than locking yourself into a loan for brand new business equipment, may be a smart choice for your business.

Different Types of Equipment Finance

Different equipment & asset finance products are designed to suit different needs. These include:

  • Chattel mortgage
  • Finance lease

For the majority of small-to-medium enterprises (SMEs), a chattel mortgage is a smart choice because it is relatively simple – and has tax minimisation benefits.

To make an informed choice about the type of equipment finance your business could benefit from most, it is important to talk to your business accountant, as well as a professional loan broker. By understanding your options and the potential benefits and pitfalls connected to each type of equipment finance on offer, you can choose finance that helps your business achieve new levels of positive growth, without the stress.

To learn more about how equipment finance can turn your business dreams into reality, talk to our equipment finance specialists at Lending Specialists today.

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