Business equipment financing

Business Equipment Financing

No business in this world can operate without proper business equipment that can often be very expensive. Business equipment financing refers to loans that are designed to help business owners purchase necessary equipment without pressurising existing credit lines. These loan products help entrepreneurs to spread asset cost over the asset’s useful life and eliminate rentals that can punch a hole in taxable profit. Equipment financing or loan can also help to accelerate tax allowances. Apart from these, there are cash flow advantages and product benefits that directly impact business performance.

What are the benefits of business equipment financing?

There are several benefits of business equipment financing. These advantages are listed below:

–          If equipment financing is used to purchase business equipment, entrepreneurs enjoy the freedom to use the purchased asset for as long as they wish to.

–          These loans allow business owners to make use of latest technology without high capital expenditure.

–          These loans can be used to purchase lighting, security systems, partitioning, office furniture, telecommunication equipment, computer technology and more.

–          Business equipment financing allow owners to either opt for tax-efficient lease agreement or simply own the equipment once the loan contract ends.

–          Repayment periods for these loans are flexible. There will always be a low initial outlay and depending on the asset’s economical or useful life, business owners can repay over a period of 1 to 7 years.

We can also help businesses to purchase necessary equipment through finance lease, hire purchase or lease purchase in case entrepreneurs do not consider loans to be the best method of acquiring business equipment. In case of finance lease, VAT is spread over agreement term whereas, in case of hire purchase and lease purchase, VAT must be paid up front.

We also help business owners to raise funds through Sale and Leaseback of equipment they own completely.