10 reasons civil contractors should consider equipment financing any time of the year instead of waiting until the end of the financial year.
In this edition I want to educate you, contractors, as to the benefits of purchasing your equipment via finance rather than out of your business’s working capital or cash reserves. Due to specific accounting, tax and cash flow positives, it is most often the best option.
The types of financing solutions equipment finance companies offer are flexible and can be tailored to specific accounting, tax or cash flow needs.
Importantly, given the demand for equipment amid Australia’s ongoing economic uncertainty, many businesses find that equipment financing is the best acquisition strategy. The current market shows equipment financing is as vital and available as it was even pre GFC, enabling businesses to secure the assets they need while achieving their operational and financial objectives. Take a closer look at my ‘10 Key Benefits of Equipment Financing’ listed below and it will show why there’s no need to wait until the end of the year to acquire equipment.
1. Up-to-Date Technology. Many businesses couldn't afford to buy outright, the equipment they need to be competitive and to grow. Use of a fixed term financing option enables them to purchase more high quality pieces of equipment, which may have been out of their reach if they only considered purchasing for cash.
2. Flexible Financial Solutions. The types of financing solutions equipment finance companies offer are flexible and can be tailored to specific accounting, tax or cash flow needs.
3. Capital preservation. Financing versus spending cash, and more specifically the type of financing used, can help reduce the uncertainty of investing in a capital asset that may not yield the desired return or increase efficiency, cost savings or future sales.
4. Improved Expense Planning. Maintaining cash flow and consistent budgeting is another benefit of equipment financing. Instead of considerable capital outlays resulting in huge budget fluctuations, financing enables even expense planning.
5. Business Cycle Flexibility. Some types of finance allow for seasonal business fluctuations, with options of quarterly, half yearly or even annual payments which protect your cashflow in times when revenue is not yet being generated from the equipment.
6. Risk Reduction. Equipment purchases involve risk to the owner, from equipment expertise, the upfront cash outlay, asset management and the items obsolescence. Financing has the ability to remove many unnecessary risks allowing you to focus on your business.
7. Equipment Experts. Many equipment finance brokers are equipment experts and offer equipment specialties which other sources of finance do not. Equipment finance brokers have special relationships with manufacturers and distributors, specializing in certain equipment types or industry categories.
8. Managed Obsolescence. The risk of owning obsolete equipment is eliminated with the use of operating lease financing, for example. This type of financing allows for easy and fast equipment updates. Most equipment finance companies, in partnership with their vendors, will work with your business to "Correctly Size" the equipment.
9. Dependable Asset Management. Asset management is a key benefit of many forms of equipment finance, ensuring equipment in operation isn't under-utilized or over-utilized. A good asset management program tracks equipment throughout its life cycle from delivery to installation, use, maintenance and finally de-installation and disposition.
10. Equipment Disposal. Most businesses don't have the resources or knowledge to efficiently manage and sell their old equipment. By the use of an operating lease facility opposed to a Chattel Mortgage, for example, you may essentially outsource the equipment management function so the financing company can handle its disposal or resale when it’s time to retire or change the asset.
Learn more about leveraging the growth of your business using a strategy which includes equipment financing strategy at www.commercialpointfinance.com.au This site offers a wide range of information regarding the various types of financing which are available to you. Don’t forget that your financial strategy for equipment acquisition needs to be discussed thoroughly with your tax and financial advisor.
If you would like any further information or advice call an expert such as Brendan Scotter from Commercial Point Finance directly on 02 9453 0300.
In this edition I want to educate you, contractors, as to the benefits of purchasing your equipment via finance rather than out of your business’s working capital or cash reserves. Due to specific accounting, tax and cash flow positives, it is most often the best option.
The types of financing solutions equipment finance companies offer are flexible and can be tailored to specific accounting, tax or cash flow needs.
Importantly, given the demand for equipment amid Australia’s ongoing economic uncertainty, many businesses find that equipment financing is the best acquisition strategy. The current market shows equipment financing is as vital and available as it was even pre GFC, enabling businesses to secure the assets they need while achieving their operational and financial objectives. Take a closer look at my ‘10 Key Benefits of Equipment Financing’ listed below and it will show why there’s no need to wait until the end of the year to acquire equipment.
1. Up-to-Date Technology. Many businesses couldn't afford to buy outright, the equipment they need to be competitive and to grow. Use of a fixed term financing option enables them to purchase more high quality pieces of equipment, which may have been out of their reach if they only considered purchasing for cash.
2. Flexible Financial Solutions. The types of financing solutions equipment finance companies offer are flexible and can be tailored to specific accounting, tax or cash flow needs.
3. Capital preservation. Financing versus spending cash, and more specifically the type of financing used, can help reduce the uncertainty of investing in a capital asset that may not yield the desired return or increase efficiency, cost savings or future sales.
4. Improved Expense Planning. Maintaining cash flow and consistent budgeting is another benefit of equipment financing. Instead of considerable capital outlays resulting in huge budget fluctuations, financing enables even expense planning.
5. Business Cycle Flexibility. Some types of finance allow for seasonal business fluctuations, with options of quarterly, half yearly or even annual payments which protect your cashflow in times when revenue is not yet being generated from the equipment.
6. Risk Reduction. Equipment purchases involve risk to the owner, from equipment expertise, the upfront cash outlay, asset management and the items obsolescence. Financing has the ability to remove many unnecessary risks allowing you to focus on your business.
7. Equipment Experts. Many equipment finance brokers are equipment experts and offer equipment specialties which other sources of finance do not. Equipment finance brokers have special relationships with manufacturers and distributors, specializing in certain equipment types or industry categories.
8. Managed Obsolescence. The risk of owning obsolete equipment is eliminated with the use of operating lease financing, for example. This type of financing allows for easy and fast equipment updates. Most equipment finance companies, in partnership with their vendors, will work with your business to "Correctly Size" the equipment.
9. Dependable Asset Management. Asset management is a key benefit of many forms of equipment finance, ensuring equipment in operation isn't under-utilized or over-utilized. A good asset management program tracks equipment throughout its life cycle from delivery to installation, use, maintenance and finally de-installation and disposition.
10. Equipment Disposal. Most businesses don't have the resources or knowledge to efficiently manage and sell their old equipment. By the use of an operating lease facility opposed to a Chattel Mortgage, for example, you may essentially outsource the equipment management function so the financing company can handle its disposal or resale when it’s time to retire or change the asset.
Learn more about leveraging the growth of your business using a strategy which includes equipment financing strategy at www.commercialpointfinance.com.au This site offers a wide range of information regarding the various types of financing which are available to you. Don’t forget that your financial strategy for equipment acquisition needs to be discussed thoroughly with your tax and financial advisor.
If you would like any further information or advice call an expert such as Brendan Scotter from Commercial Point Finance directly on 02 9453 0300.