A business small or large something is bounded by budget limits and could not source equipment. Atlas Equipment Finance providing broking finance service regarding commercial equipment finance in Brisbane in many industries with their experienced commercial finance brokers.
Following are the benefits of equipment financing.
- NO DOWN PAYMENT REQUIRED.
Subject to traditional lender’s difficult requirements, now you don’t have to pay a single penny as a down payment to get 100 percent financing, it will also maintain your cash flow which is concern to your business.
- CASH MANAGEMENT.
You can manage your cash position or working capital structure by equipment financing, so the cash would be used different areas required by your business like, Research and Development, Advertising and Marketing, Improvements, Expansion.
- RISK MANAGEMENT.
Your business need a heavy duty equipment and budget is also not enough and one of the most concerned factor i.e. Risk. By investing in capital asset business has to wait long time for the return and risk of any natural disaster etc. in which asset could be destroyed, but with equipment financing risk factor is mitigated as equipment is out sourced.
- HEDGE TOUCHING INFLATION.
Purchasing equipment by paying cash or by making huge down payments in dollars, this medium of payments declines your worth of funds. Risk of inflation is hedged by equipment financing. Your lease / loan rate are locked as exist on closing date. It also mitigates the devaluation of payment over time due to inflation and several financial risks as it is suffered by the finance company.
- EXPENSES REGARDING BUSINESS CYCLE FLUCTUATIONS AND CASH FLOW.
Rent payments can be customized to match cash flow as equipment financing companies are giving many different options for rent payment which is a fruitful for a business to maintain their budget as well including cash flow.
- EQUIPMENTS ARE UPDATED WITH NEW TECHNOLOGY.
If a business wants more and best equipment then it is only possible by equipment financing without making any investment. Your equipment can be updated or replace with new one as per equipment finance program’s terms and condition mentioned in lease contract.
- TAX BENEFITS.
As the financing company is holding the ownership of equipment so the depreciation is also pertain to it. A filer financing company should work on lower rents to reduce their tax payment and it will be benefit for customer by paying low rents.
- ATTRACTIVE STATEMENT OF FINANCIAL POSITION.
Monthly rental payments are shown as expense not as long term debt. When a statement of financial position has little debt it means you have much funds available for your business growth. And who does not like to grown more and more business?.
- ASSET MANAGEMENT.
It also save the cost of asset management as it is paid by the financing company (if decided in terms and condition). Installation cost, service charges, de-installation expense, updating/upgrading of equipment and disposal of Equipment, all these expenses are responsibility of financing company.