Almost every business requires equipment to operate and make money. Each business has to choose the best equipment finance option based on factors such as cash flow, balance sheet impact and available credit. A business can use equipment finance Perth to acquire equipment through an equipment loan or lease. Equipment finance Perth, such as a sale leaseback, can raise capital from owned equipment. Equipment finance Perth offers flexible choices that can work with the diverse objectives of almost any business. Equipment financing provides an excellent alternative source of capital and a flexible alternative to cash in the acquisition of business-critical assets and equipment.
Virtually any sector of any industry is eligible for equipment finance Perth. In fact, businesses that finance equipment range from the biggest businesses to one-person operations. Equipment finance Perth providers also offer a variety of solutions, from master leases to non-recourse loans that may finance land, buildings and equipment. Businesses typically choose to finance equipment when they want to meet one or several of the following objectives:
· 100 Percent Financing
A borrower may be able to qualify for 100 percent financing of equipment. Hard costs are included such as the equipment itself. 100 percent finance also includes soft costs such as shipping, taxes, installation costs, training costs, and other fees.
· Keep Cash in the Bank
Making large capital expenditures on equipment can hamper a business’ ability to meet daily expenses. Equipment finance can help reduce the risk of investing in an asset. A business can keep cash on hand to apply to more pressing needs while achieving its goal of increasing efficiency or expanding operation with new equipment.
· Improved Expense Planning and Business-Cycle Flexibility
Financing equipment helps maintain cash flow. A business can achieve greater stability in budgeting by setting a fixed lease payment to match cash flows, even seasonal fluctuations in cash flows
· Capitalize on Technology Updates
An advantage to equipment leasing is that you can turn back your equipment after a short period of time and capitalize on technology upgrades. Equipment finance may also allow a company to acquire more or better equipment than it could on its own.
· Tax Considerations
There are many tax advantages to equipment finance. An equipment loan or lease each has its own unique set of tax advantages. Consult with your CPA to determine the best type of equipment finance for your balance sheet.
· Relationships with Equipment Experts
Some finance firms offer equipment, software and/or services bundled together in the finance package. In many cases, this added value will reduce costs. Some equipment finance companies also share in some of the risk since they tracks the status on the equipment, know when update or upgrade, provide regular service and maintenance, as well as installation and de-installation.
· Obsolescence Management
When an equipment finance company owns the equipment in a true lease, they bear the risk of the equipment becoming obsolete.
· Equipment Disposal
Equipment management by a third party should enhance the business’ ability to focus on its operations. Some equipment finance companies Perth may agree to dispose of the equipment when it is no longer needed. Since disposal of certain technology devices and computers is usually regulated by Federal and State government, this reduces liability of the business for compliant disposal.
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