In an age where having strong cash reserves is vital, finance of equipment is fundamental to any business plan. It is generally considered unwise to pay for this equipment outright, using up valuable working capital. Any spare cash reserves should be used for more pressing requirements such as paying staff salaries, purchasing stock, cash flow contingencies or identifying potential new business opportunities.
Here are major benefits to using asset finance over outright cash purchase.
Payments are 100% tax deductible
Asset finance enables you to let the equipment pay for itself as you use it, rather than upfront in one lump sum.
Your working capital is preserved.
Unlike an overdraft facility, an asset finance agreement cannot be withdrawn once active.
The interest rate is fixed for the duration of the agreement.
Documentation is simple and easy to understand.