It gives you a rainy day fund.

The key benefit of equipment finance, be it leasing or hire purchase, is that it will preserve your cash in your company. Every company needs what we call a  rainy day” fund. The fund that covers those unexpected bills that suddenly crop up from nowhere.  You know the sort of thing, a van engine suddenly needs replacing.  Cash needed to purchase new materials for a  new customer who will help you grow your business. Remember the key phrase in any business, Cash is King!

Avoids the bank manager.

Very few people actually enjoy speaking to your bank manger, there is always a certain air of trepidation. Will he ask for extra security to cover the loan or overdraft that he might consider. Or will he ask for updated management and budget figures?  The terms that banks offer loans now are seen as one of the main obstacles to companies looking for finance from their banks. And remember, overdrafts can be withdrawn normally on 28 days notice!! When you ask the bank manger if you can include installation, transport, etc, you will hear the phrase that is very well known, ” computer says No”. With most  finance options, this can normally be included in the overall agreement.

A new line of credit.

It will free your banking credit lines, your overdraft or other loan accounts  for other uses, perhaps the need to employ extra staff, or sudden cashflow fluctuations. Keeping a credit line free for emergencies is a very good longer term planning idea. Customers might switch payment terms from 30 days to 90 days, you can moan, but there is not a lot else that you can do. By not overloading  your bank lines with equipment purchases, means you can ride out the storms.

But if I pay cash, it is mine!

That is true, but if you think about it, do you need to own the equipment. If you look around you, how much old equipment is still in storage in your company, old computers, fax machines, obsolete machinery or other equipment that you will never use again? Just clutter. But think, if you really need to own equipment, finance is a very good option, and you have to spread the cost.

With our equipment finance options, either with HP, where the title fee at the end is normally around £150 or with leasing, often no more than one more monthly repayment, it is hardly a king’s ransom! You could say, that is having your cake and eating it as well!