You have to spend money to make money. It’s a phrase most people know well, especially when you own or run a business Whether you’re running an office-based business and need equipment such as printers, copiers and computers or working in construction and looking to buy machinery or business vehicles, it’s important to think about the most beneficial way to pay for it all.
Things to consider when starting a business
The ability to efficiently manage your cash flow is critical to your businesses long-term existence. It will also help you to keep enough cash on hand to operate during slow seasons.
Your cash flow has an impact on your future expenditure decisions as well as the route your company will likely go. Keeping your finger on the pulse can help you make the best decisions possible.
Maintaining working capital
Particularly for small and medium-sized businesses, paying for equipment upfront can be a big risk if it leaves you with little capital – should there be any unexpected expenses that hit your business, without enough working capital in the bank it might be disastrous.
Opting to finance lets you keep your capital in the bank, giving you peace of mind to know that if anything happens, you have the financial means to work through it.
Get start-up capital
You may have the perfect business plan that has looked at every angle of making your business thrive. However, without the start-up capital, your business can continue to remain a dream. Knowing which finance options, you have can bring your business the best financial solutions.
Keep your business up to date for efficiency
In most industries, it’s critical to use machinery and up to date equipment to maximise output. The days of using a pick and shovel with a gang of workers are long gone. Buying the latest equipment isn’t cheap, but equipment financing allows firms that don’t have enough cash on hand to buy it outright to do so. Furthermore, leasing allows you to upgrade to new technology with reasonable simplicity and at a cheap cost after your lease term ends.
Small business tax benefits may be another reason to choose business equipment financing.
Getting the biggest tax savings for your small business can be a crucial step towards staying on top of your finances. Many businesses are eligible for depreciation and interest deductions, as well as GST related credits. When you borrow money to buy equipment, make sure you chat to your accountant about what small business tax claims your company might be eligible for.
Seek professional advice
Not too sure which option will be best suited for your current financial situation, or put further strain on your budget? Approaching an accountant can help you quickly find out what options will be best suited to your situation. They can also give you advise from a tax perspective loan options that come with the lowest rate possible for you to choose from under no obligation.
General advice from a broker
Choosing the right equipment for your business can be tricky but an experienced broker should have spoken to many people in similar situations to you. Save time and trouble of researching equipment for your business and let your broker help steer you in the right direction. You might get some helpful business building tips along the way.
Speak with us today about equipment finance.
If you’d like some more information or would like to chat about which type of equipment financing would work best for your business, we’re always here to help. Drop us message us online and you’ll hear back from us soon.
Our team of finance brokers has an extensive amount of experience working with businesses of all types and sizes across Australia
Disclaimer: Nothing in this article should be assumed as personal advice. You should consider whether the information is appropriate to your needs, and where appropriate, seek advice from a professional financial adviser.