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The idea of spending money for business expansion or upgrading your equipment sounds interesting but at the same time intimidating as it may also mean hurting your bank accounts. With the many demands of keeping a business afloat, especially with the impact of COVID-19 in the industry, allocating a large portion of business capital to upgrades and expansions may not be a business owner’s first choice.
Asset finance is a great option for business owners who would like to apply for loans without risking their other assets. In asset finance, the asset itself acts as security for the loan.
Still not sure if you should consider asset finance for your business? We’ve listed down 5 reasons why asset finance is good for your business.
Maintain your cash flow
Asset finance lets you purchase new equipment or vehicle and pay them off over time. Once the loan terms and repayments are completed, you get full ownership of the asset being financed. This allows you to expand your business or upgrade your equipment while maintaining your cash flow.
Getting new equipment or vehicles will also benefit your business in the long run in terms of cost as instalments may be comparable, if not cheaper, than the cost of hiring a piece of equipment or vehicle over and over. In addition, it is also cheaper to maintain and service new equipment than the old ones.
No other collateral needed
Compared to other loan options, asset finance is the better choice if you don’t want to use your other assets as collateral. In asset financing, the equipment or vehicle itself serves as collateral for your loan. This means that if you are unable to meet your repayments, the lender will simply take ownership of the equipment or vehicle funded under asset finance.
Increased productivity and efficiency
Let’s admit it, working with old equipment, machines, or vehicles may often be frustrating. Especially if it’s not working as efficiently as it should. Not to mention the time it takes for it to be repaired, serviced, or maintained. This means less time spent making your customers happy. And that’s not good for your business.
When this happens, upgrading your vehicle or equipment is the smartest option. New equipment or vehicle works more efficiently, thus increasing your productivity and ability to service a broader client base. Plus, it gives you peace of mind knowing you will be able to meet business demands.
Most of the time, newer models of machines or vehicles are released with the latest and improved safety features and functions. This helps you ensure the maintenance of health and safety in your workplace.
Conversely, old and outdated equipment may be a safety hazard if not maintained adequately–putting you, your employees, and even your clients at risk.
As a business owner, you know it’s important to look for all eligible tax deductions to maximise your business’ income. Well, asset finance will also allow you to be eligible for tax benefits such as tax write-offs and deductions from all costs associated with purchasing the asset.
These are just a few of the benefits you can get from asset finance. So, if you need a new truck, a new machine, or any other equipment or vehicle for your business, and you don’t have the capacity to spend your cash outright, you might want to consider asset finance. You may also read about the questions to consider to know if asset finance is a suitable option for your needs.
Condon Noller has access to a wide range of loans from Australia’s leading lenders, so we can help you with a loan for your home, property investment, car, or almost any other purpose. Give us a call today to get a quote within the hour.
Rory Condon: 0427 224 442 | 4937 5608
Matt Noller: 0438 766 165 | 4620 4401
Nijo Antony: 0499 032 585 | 4937 5623
Connie Blunden: 4937 5616