First time Financing: 3 Tips for Getting the Best Deal
Regardless of your industry, if you run a small to medium-sized company you can benefit from new equipment or technology. However, many business owners defer buying new technology because it is simply too expensive!
Buying new or upgrading existing technology can offer a fantastic return on investment (ROI) through increased business efficiency. Top rate technology has the ability to simplify many tasks, alleviate bottlenecks and optimise staff productivity, and so it is simply something you need in your corner to amplify profit.
There are countless advantages of new business technology because, after all, it was all designed to enhance our ability to capitalise in our industry.
Being a business owner, you will know there are multiple things to consider when it comes to commercial equipment finance. However, if it is your first enlisting this service, you may be wondering where to get started.
This is totally understandable, and you will be happy to know that it really isn’t that difficult – it’s simply an aspect of modern business.
With this in mind, here are three important considerations when first time financing:
- Think about cashflow
Regardless of whether your business has the money to buy new technology when needed, you may still require financing for its business advantages. Investing a significant amount of your money into new technology will leave you with less capital to finance daily business operations.
Furthermore, it can be severely limiting for future growth opportunities, especially if you are using your cash for both business operations and scalability. As such, there may be flexible repayment options that allow your business to structure its loan around aspects that affect your company.
This will give you greater control over your loan, how it is used and how you can repay it!
- Think about your loan options
There are numerous loan options that you can use to buy new technology, including:
- Secured loans: These loans typically provide you with the full purchase amount, with ownership passing directly to you once the product is purchased;
- Hire purchase: With this agreement, the lender purchases the product and leases it out to you for an agreed time. These are similar to typical equipment loans and generally don’t rely on extra security for approval;
- Finance lease agreement: The repayment system is structured to provide residual value, providing you with fewer monthly repayments and options upon the completion of the lease period.
Each option has its own benefits as well as tax requirements. You may also be able to claim asset depreciation and other tax deduction costs. Always ensure you speak to an account, broker or financial expert when it comes to your loan options and which one is right for your business needs.
- Consult a finance broker
A trusted, highly regarded finance broker will be there to help you find the best equipment financing for your business needs. They will have the skills and experience to help you get the best deal, as well as access to a network of finance products and lenders who can provide you what you need to get the best ROI.
Furthermore, they will advocate to lenders on your behalf, ensuring you have a respected industry member on your side and helping you get the best financing deal for your needs. These are the outstanding benefits of having a broker in your corner and why so many Australian businesses benefit from their service!