Smart business owners know when and where to seek aid
when it comes to their business finances. Companies as small as mom and pop
operations and as significant as Fortune 500 conglomerates choose to finance
their equipment for a good reason—and this is access to a whole range of
benefits. Below are few of the best advantages of equipment finance Adelaide businesses stand to
get when they decide to go the equipment leasing and financing way:
· Unlike traditional loans, equipment financing can be
arranged so that you can have 100% funding for your equipment without having to
pay anything in advance (no down payment). This can be especially helpful when cash
flow is an issue to your business at the moment of equipment acquisition.
· Equipment financing is a useful means of acquiring funding
that allows you to hold on to your working capital or your cash so it can be
used for core areas of the business such as marketing, R&D, expansion, or
other improvements.
· With equipment financing, you avoid the uncertainty of
investing in capital asset until the desired return is achieved. This results
in a lot of cost savings, increased efficiency, and the fulfilment of other
business objectives as you manage the risk of a huge purchase. Equipment
financing also hedges inflation risk.
· This type of business financing is likewise helpful in
maintaining cash flow and providing greater certainty in budgeting as you are
given the opportunity to customise payments in a way that matches your cash
flow as well as your seasonal cash flows.
· Equipment finance enables your business to acquire
more equipment, and better, more advanced ones than you could ever have without
seeking financial aid. This means technology upgrades and even equipment
replacements you otherwise won’t be able to afford.
· Tax-oriented leases may also produce lower rents as
you retain title and depreciation. This means better tax benefits for the
lessee.
