Equipment Finance Melbourne
Equipment Finance Benefits
There are many reasons why businesses choose to get equipment finance instead of paying out for the full amount of a piece of equipment all at once. Both startup businesses and companies that have been running for a long time can make use of new equipment, so why not find out the benefits of this type of financing loan?
You can keep your money
Equipment financing is a great way to keep a large portion of your cash that would otherwise have to be spent all at once on a piece of expensive equipment. It can allow you to retain control of your finances, which can in turn allow you to spend money on other areas of your business - like growth and expansion, or even advertising.
Plus, it's also great for businesses that don't have enough money to buy big pieces of equipment, as they can pay small amounts of money back at regular intervals. Also, you could have 100 percent financing of equipment with a down payment of $0. This is usually a great bonus if cash flow is a concern.
In fact, financing equipment can help to maintain cash flow and can assist budgeting in another way. By setting the regular payments to match your businesses monetary input, you could make your cash flow look even better.
You can get whatever you need
Most of the time, you'll be able to get whatever equipment you need. From big machinery or plants to furniture - it can all be obtained through equipment financing. There are a lot of different items that can be offered by financing agencies - and a fair few agencies to choose from, too.
What is equipment leasing?
Equipment leasing is a form of financing, but with one major difference. Instead of paying money to own the item (like with a usual equipment finance), a business instead pays to use it. Leasing is very similar to renting and it can be much better than normal equipment financing for some businesses. Why?
Well, with leasing you can stop renting and return the equipment to the lender, so you won't be stuck with out-dated equipment by the end of the financing term. This can sometimes be a concern for a start-up business - and it can really damage growth and progress in certain niches.
And, although you won't own the items in the future, you will still be able to use them and get newer equipment instead, as you continue your contract.