Using equipment finance can be key to business growth

Upgrading or obtaining new equipment can be key to business growth, whether it’s increasing efficiency or expanding your offering. However it’s important to make sure the equipment is acquired in the most financially advantageous way for your business.

There are three steps to making your equipment purchases more productive for your business now, and in the long-run:

 

 

Financing equipment and vehicles also helps keep working capital in the business. So how could this work for you?

The great thing about vehicle and equipment finance is that the equipment acts as security for the loan,” advises James Watson, director at FundingPro, “This means you can borrow 100% of the equipment value and maintain your working capital at the same time. This also makes applying easy and funding quick. Being able to access the right equipment for your business, without being limited by how much spare cash you have, means you are able to unlock new opportunities and bring in more customers to create growth”.

Watson outlines another added bonus, “In addition to creating opportunities and taking advantage of tax deductions, any equipment you purchase is considered a business asset and can therefore help you gain funding in the future for further growth.

To give you an idea of how you could make equipment finance work for you, let’s look at Scott’s business:

Scott owns a bakery and is looking to upgrade his ovens. Instead of pulling cash from other areas of the business, or using his personal assets as security, he opts for an equipment loan where the new equipment acts as security. This way, Scott is able to take advantage of the Instant Asset Write-Off Scheme as the ovens are less than $20K and also claim the interest payments over the life of the loan. He is also able to serve customers faster and save on energy costs, allowing his business to generate more revenue and continue to grow.

There are as many uses for equipment loans as there are businesses in operation, including:

When it comes to funding, it’s important for businesses like yours to consider how their purchases are serving their business’ growth. Strategic equipment purchasing, utilising tax deductions and considering equipment finance means your business can look forward to fresh revenue streams and growth opportunities without jeopardising the effectiveness of your surplus cash.

Getting fast, simple equipment finance is easy when you use the FundingPros. Contact us or apply now and a senior loan advisor will be in touch to tailor a loan for your business.

The information in this article is of a generalised nature, it is important that you obtain individual tax advice for your own small business.