If you run a small business and require new equipment, you may find that the cost of purchasing things like machine tools outright is beyond your budget. One solution is to make use of tooling finance to acquire the equipment. Many SMEs around the UK use this option regularly, and it has become a very popular way of financing the purchase of tooling and machinery.
A tool finance loan involves making payments for your new equipment in instalments. Your business will enter into a contract with a predetermined payment schedule over an agreed period. This agreement allows you to spread the cost to make the tooling you need more affordable.
The contract is complete once you've reached the end of the payment period and you have made all your payments successfully. You then gain full ownership of the equipment.
There are various benefits to acquiring your tooling and equipment this way:
1. It enables you to get the equipment quickly, rather than having to save up for it. This means that your business can start earning and making profits with the tools, sometimes before you have even started making repayments.
2. It involves no risk to your other assets. Tooling finance stands separately from other loans, and Love Finance's loans are always unsecured. We will never put any of your other assets or property at risk.
3. There will be minimal downtime, avoiding disruption to your workflow or income. You gain access to the asset quickly, meaning that you can begin using it immediately and continue to work as usual.
4. It is easy to budget for, as there are fixed instalment payments and no variable interest rates. We never include any hidden costs or early repayment fees.
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Tooling finance products are designed to help businesses in industries like construction, agriculture, manufacturing, automotive and catering industries, to name just a few. When tools need replacing, or new machinery needs to be brought in, tool finance can make it happen quickly and affordably.
Tooling finance is accessible to a wide range of industries within the UK.
The loan must be for purchasing a bespoke tool with a specific use for your business.
Your business must repay the tooling finance loan according to the agreed schedule.
The asset itself acts as a security measure for the lender. Hence, no other assets in your business are at risk.
A limited company can borrow between £5,000 and £500,000, while an unlimited company can get asset funds between £25,000 and £500,000.
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Small businesses always have an eye on their cash flow. Machine tools can be costly to purchase outright, meaning they are a substantial business investment. You may not have the necessary cash to hand, or you may have to put a strain on other areas of your business to find it. This is where hire purchase comes in.
Your money will be kept where it is needed most. That means in the bank, ready to pay your staff, suppliers, rent and other expenses that support the business and keep it in operation. Each instalment you pay with business finance is a fraction of the cost you would face to buy the equipment in a single transaction. This makes it far more affordable, so you can feel confident that your business cash flow is healthy.
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It's essential to choose the right tooling finance option for you and your business. There are many things to consider, including down payments, monthly payments and VAT. The best approach if you are unsure is to speak to the experts and ask for help.
Our team of devoted account managers are always available to answer your questions. You can contact us here. We love automation, as it makes things as simple as possible for our customers. Still, we also want every customer to feel supported and sure of their decisions. Ask us your questions, and our experts can help.
Alternatively, if you already know that tooling finance is what you need to help your business grow, visit our website to apply now. We'll get you funded ASAP.
