For many businesses, cash flow issues can be a barrier to progress. While your organisation might be performing well, if you’re unable to raise the capital upfront for the equipment you need, you could find yourself falling behind your competitors.
Thankfully, there’s a flexible way to ensure your company has access to the machinery, vehicles and technology it needs to succeed. With equipment financing, your organisation will have access to the capital to facilitate growth.
All businesses need to ensure their equipment is updated and replaced on a regular basis - however, cash-flow issues could mean that a one-off cost to purchase a new piece of equipment outright isn’t always feasible. With equipment financing, your organisation can keep its assets up to date by accessing funding for essential tools, machinery, technology and vehicles in the form of a loan which is paid off in monthly instalments. This way, your business can gain access to the latest equipment without having to worry about raising the funds upfront.
Equipment finance enables companies to access the tools they need to operate successfully. When an application for finance has been accepted, the business receives funds from the lender. The business then repays the lender in monthly instalments (plus interest), and the loan is secured against the equipment it has been used to purchase. This means that in the rare chance that the business is unable to meet the terms of repayment, the equipment could be taken away by the lender. Once the loan has been repaid in full, the business owns the equipment outright.
For SMEs and startups that are attempting to increase their operations, huge upfront equipment costs might not be possible. To make essential purchases more affordable, it can be beneficial for companies to go down the equipment financing route, which allows them to spread the cost of large-scale purchases into manageable chunks without having to rely on traditional lines of credit like business loans or overdrafts.
When your business has predictable repayments to make each month, it makes cash flow management that little bit easier. Instead of focusing on balancing the books after a large outright purchase, you can instead concentrate on running your business the way you want to.
Equipment finance also offers scalability and the flexibility to grow as and when you need to. If you finance one piece of equipment and find that it helps your business to grow, you should be able to easily ramp up production or increase operations with further financing if you’re meeting your monthly repayments. This allows you to increase productivity at the most crucial times.
However, equipment financing isn’t always the preserve of small or fledgling businesses - even larger, more established companies opt to purchase equipment on finance, as it allows them to spread the cost while using their existing capital in other ways to benefit the company (such as marketing). There are also tax incentives to leasing equipment, which we’ll explain in detail.
Leasing is tax-deductible and can be a useful way for businesses to reduce their yearly tax bill while also accessing the latest technology. Because your business won’t be seen to own the equipment until the final payment has been made, your monthly payments can be written off against your annual tax return.
Payments on equipment financing are listed as operational expenses as opposed to outstanding liabilities or debts. This can help your business to reduce its amount of short-term taxable income, as capital allowances are passed onto you.
It is also possible to reclaim VAT on monthly equipment finance payments. These payments have a “lease” status on the company balance sheet until you’ve made the final repayment, and this helps to put your company at a financial advantage, as the money saved on tax can more than offset what you’ll be expected to pay in interest.
Your company can get equipment financing by completing a simple online application with Love Finance. As part of the application, you’ll need to answer some straightforward questions about the nature of your business and provide some contact details. Our automated application process makes things as easy as can be. After we receive your application, you can expect a rapid response.
Generally speaking, most equipment finance loans last between one and three years. However, the amount of time you can lease items can depend on how expensive the equipment is, how likely it is to lose its value over time and how long your lender is willing to offer you finance.
As commercial equipment finance specialists, we’ve built up strong working relationships with suppliers across a gamut of industries throughout the years. Whilst we offer the flexibility to offer financing in almost any industry, we consider ourselves to be the definitive financing platform for:
• 3D printing technology
• IT equipment
• Software
• Catering equipment
• Printing equipment
• Garage equipment
• Telecoms
• Commercial drones and aerial imaging equipment
If you operate within any of these industries, great - if you’re looking for something else, the best thing to do is to contact us with more information. Our friendly and experienced team will be happy to discuss your requirements and offer you a quotation based on the equipment you require.
At Love Finance, we’re passionate about giving UK businesses a helping hand when they need it the most. Years of experience means we understand how having the right equipment is vital to running a small business. We’re glad to offer our clients:
• Automated business equipment financing in 24 hours.
• Tax-deductible leasing options.
• Zero application fees.
• Affordable equipment finance to keep business assets safe.
• A friendly and understanding approach to what UK businesses need.
Why not apply online using our fully automated service and get your hands on the equipment you need to improve your business at an affordable monthly rate today? With a simple application process and high acceptance rate, we believe you’ll be pleasantly surprised at how easy it is to secure the equipment your business needs to succeed.
