You find you are in need of new fleet vehicles, equipment or machinery, yet dread making the purchase as you know it is going to affect your available cash flow for some time to come. You recognize you need to do this if you wish to grow your business or remain competitive in your industry, but it is still difficult to spend the cash. You do have another option, one that may make more sense, in the form of asset financing. When you choose this option, you'll find you get not only the advantages of new equipment, vehicles or machinery, but you also receive other benefits as well.
When you opt to make use of business asset finance, you keep your borrowing options open. The lease you take out to fund the purchases is classified as a business expense instead of a debt. This means your credit rating won't be impacted, and you will have more borrowing options for other purchases you wish to make, ones which can't be obtained using this financing option.
It is easier to establish and maintain a budget when you opt for equipment finance uk. You know exactly how much you will have to pay each month and for how long, improving your overall cash flow. Business conditions change regularly and construction finance companies you can adapt when you are using asset financing.
When you work with asset finance providers, you may be able to include bonuses in the contract. Speak to various providers to see if any will include equipment servicing at no extra charge, as this will save you money over the length of the lease. Others may wish to see if variable monthly payments are allowed, based on cash flow fluctuations. If you know you are always slow at a certain time of the year, you may be able to pay less at that time and more during the months when business is good.
Lease payments are classified as expenses. This allows you to take them off of your taxes. When you choose to purchase assets outright, you are only allowed to deduct the interest you pay and any depreciation. The savings you obtain by leasing and marking the lease payments off can improve cash flow significantly.
Consider the above benefits of asset financing when determining if this option is right for you. Although you would save money by purchasing assets outright, you need to consider the benefits of going this alternative route. Many companies find asset financing makes more sense, and you may too.