The benefits of buying business equipment on finance

By: iConquer

Date: 25 April 2019

Business owner making loan application for equipmentWhatever kind of business you run, you’ll need certain equipment to get the job done. From raw materials to IT hardware, nothing happens without the right equipment.

The problem is that in some instances, the equipment you need packs a price that exceeds your immediate budget.

This is a common scenario, which presents two options:

  • Option 1: Save for as long as necessary to pay for the equipment you need.
  • Option 2: Buy the equipment you need right now on finance.

Both are perfectly feasible options for getting what you need but are very different in their approach. Assuming the equipment you need is important to the business, choosing finance so you can go ahead and buy the equipment immediately really is a no-brainer.

But even apart from the convenience of easy access to the equipment you need, there are additional benefits to buying business equipment on finance

Finance opens the door to higher-quality equipment

When you consider financing the equipment you need, you immediately gain access to better quality equipment. Your current budget may be limited to a £300 laptop, but financing the purchase could open the door to a £1,000 Ultrabook. And if the latter enables you to do a better job, why wouldn’t you take advantage of it?

Keep your cashflow under control

Financing equipment can help keep your general outgoings under control.  Rather than blowing a sizeable wad of cash on a major expense and leaving yourself with little leftover, it’s often safer to spread your expenses and outgoings over time.

Finance is flexible and affordable

The flexibility and affordability of equipment finance is a major consideration. Depending on the provider you work with, there’s every chance you’ll gain access to a great deal. You may even find there's no deposit no pay and 0% interest. When the finance has been repaid, you may find you haven’t paid a penny more than you would have if you’d purchased it outright.

Finance can save or even make you money

There’s equipment you need to get something done - or to improve something you’re currently doing - but you can’t afford to pay for it outright immediately. The longer you wait, the more money you lose out on making. If only you had the right equipment. Rather than selling yourself (and your business) short, it makes sense to get the tools you need to do the job properly, now.

Buy Now, Pay Later

The benefits of buying now and paying later aren’t limited exclusively to businesses and commercial borrowers. If there’s something you want to do but can’t afford to do it right away, affordable finance could help.

For example, consider an amateur DJ looking to go pro. They need to overhaul their current hardware, but don’t have the kind of cash they need to pay for it outright. In addition, they’ve comparatively little left over from their monthly income after covering all essential outgoings.

This leaves three options - save for years on end, abandon the idea entirely, or consider an affordable DJ equipment finance solution. By purchasing the DJ equipment they need on finance, they’re able to upgrade immediately, begin refining their skills and take a step closer towards going pro.

This is likely to be a far more appealing prospect than allowing their skills and motivation to stagnate while they save for the equipment they need.

Once again, it’s simply a case of considering the advantages, disadvantages and potential costs of financing your equipment. If financing the equipment you need helps you achieve your objectives, or to do something better than you’re currently able to, equipment finance is an option you can’t afford to overlook.

Copyright 2019. Featured post made possible by iConquer Ltd

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