With 2019 already in full swing, have you thought about what you want to achieve for your business this year?
Your equipment needs are often at the top of these lists and it’s important to put some thought into what you may need to purchase to maximise your opportunities, win contracts and expand your business.
Some key areas to plan in are:
1. When will you make purchases?
There are some key times to purchase to get the best deal, and it often pays to look to make a purchase when there are trade or industry shows, at the end of financial year and when models are being run out.
2. How are you going to pay for the equipment?
There are several options to consider when using finance to purchase your equipment. Some options your broker can discuss with you are:
- Type of equipment finance – most people use a chattel mortgage for their equipment, but there may be more appropriate options like a finance lease or an operating lease for certain types of equipment. It may help with tax, CAPEX allocation and more.
- Taking advantage of low interest rate offers from manufacturers vs financing through a broker. Money’s never free, so make sure you understand your options.
- Deferred payments – you can purchase now, get your equipment to work generating income, while deferring initial payments to minimise cashflow impacts. It costs almost no more to set up an arrangement like this.
- Setting up limits – a great way to budget for purchases, while making it faster and easier to purchase multiple times through the year.
- If you’re putting the loan through your primary bank, are you using up all your borrowing capacity when you don’t need to? Good brokers will diversify your debt to allow for you to grow and avoid saturation with one lender.
Your equipment finance broker is always here to assist with your next purchase. Use their knowledge and relationships with lenders to ensure you’re getting the best solution for your unique business.
For a no obligation discussion on finance for your business needs, contact: Nick Miller on 0429 794 871 or email: nmiller@mkpgroup.com.au today.
This article was first published in The Fence magazine.
