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How to finance new business equipment
 

How to finance new business equipment

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A strategic, well drafted business plan is vital when sourcing funds for your business. Find out how you can develop business plans that attract investors, potential business partners, funding ...

A strategic, well drafted business plan is vital when sourcing funds for your business. Find out how you can develop business plans that attract investors, potential business partners, funding agencies and many more. Check out: http://www.business-plan.co.za

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    How to finance new business equipment How to finance new business equipment Document Transcript

    • How to finance new business equipment Business planningHow to finance newbusiness equipment
    • How to finance new business equipment Business planning A strategic, well drafted business plan is vital when sourcing funds for your business. Find out how you can develop business plans that attract investors, potential business partners, funding agencies and many more. Click here.Every business requires equipment at some point. Your businessmay need computers, vehicles, manufacturing machines, factoryequipment and is entirely dependent on the type of business youare running.Imagine the business equipment needs of a simple business like acoffee shop, for example. Youll need to acquire, in addition tobusiness premises, one or more good quality coffee makers orespresso machines, tables and chairs for your customers,refrigeration units, storage units, a dishwasher and mugs andserving ware. Thats quite a list, and quite an outlay for a newbusiness - all before you open your doors. There are, however, anumber of different ways that you can acquire equipment andother assets for your business without having to part with yourliquid assets by making payments up front.
    • How to finance new business equipment Business planningOperating LeaseAn operating lease allows you to acquire the equipment you needfor your business without a large initial outlay. In addition, youget up to 90% of the resale value.The advantages of an operating lease include:lower rental feesthe ability to use the equipment without owning itthere is no need to dig into other lines of credit to finance apurchaseyour rental fees may be deductible from taxes as operatingexpensesthere are other tax advantages, including avoidance ofdepreciation
    • How to finance new business equipment Business planningAsset Finance LeaseA finance lease allows you to use the equipment you needwithout owning it. When the lease ends, you may get apercentage of the resale profit in the form of a rental rebate.The advantages of a business asset finance lease for yourequipment include:Low initial expensesEasily arranged through many vendorsMonthly fees are a fixed expenseLeased equipment is a balance sheet assetMaintenance contract is often included as part of the monthlyrental feeUse of equipment without ownershipRental fees may be deducted from taxes as operating expense
    • How to finance new business equipment Business planningFrees up or preserves other lines of credit for other usesA percentage of resale price may be available as a rental rebateHire PurchaseHire purchase represents an excellent way to acquire equipmentwithout paying the entire cost up front. The advantages of hirepurchase include:immediate use of the equipment that you needfixed or variable rates of interest available on loansthe interest on your commercial loans may be tax allowableconsistent monthly payments make bookkeeping easierownership of the asset at the end of the payment termcan often be tailored with payment holidays or stepping paymentsto allow the equipment to start generating profitsbalance sheet asset
    • How to finance new business equipment Business planningMost manufacturers and suppliers will work with you in manydifferent types of finance and purchase arrangements. Once youknow the type of equipment you need, shop around to find outwhat finance and purchase arrangements are available to you. Atrained business consultant may be of use in helping you decidebetween asset finance and hire options.
    • How to finance new business equipment Business planningDiscover how your business can purchase new assets and equipment without affectingworking capital using UK asset finance leasing. Visit Cash4Business athttp://www.cash4business.co.uk to find out how your business could benefit.Article Source:http://EzineArticles.com/?expert=Chris_Johns