Equipment Finance Benefits

Can’t see the wood from the trees?

Finance 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, to cover the unexpected bills that suddenly crop up from nowhere.  You know the sort of thing, a van engine suddenly needs replacing,  money 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, 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 And remember, overdrafts can be withdrawn normally on 28 days notice!!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 really think about it, do you need to actually 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 spread the cost.

With 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 kings ransom! You could say, that is having your cake and eating it as well!

Everyone’s reason is different.

If you asked companies that use leasing or finance, they will come up with many different reasons why they chose equipment leasing or HP, it  could be cash flow, might be a rainy day fund, they might require their cash to fund other equipment. New starts need to save their cash, established companies might say, it is the tax benefits. It simply is up to you, but remember no one pays their staff 3 years in advance, so let the equipment work for you and generate the profit for you, but spread the cost.

We were told many  years ago, your brain is like a parachute, it is only good when it is open!!

Come out of the wood, and talk to Oak, friendly, transparent and professional finance

We have had the pleasure of dealing with Oak leasing for the last 15 Years on three different projects.They have always delivered and found them to be very professional. I would never hesitate to recommend them. Looking forward to work with them again on a new project soon.

I always recommend Oak Leasing to anyone searching for equipment finance.

We are a start-up company and the Oak Leasing has been incredibly helpful from the beginning. Once provided with a list of the equipment we required, the process has been smooth. At each stage we have been informed and updated on the progress.

The paperwork was reduced to a minimum and contract written in plain English. Great service, no hidden costs, the whole process straightforward and transparent. I would recommend the Oak Leasing wholeheartedly. And special thanks to John Barter, who was in charge of our contract from the beginning to the end.”

We approached John Barter of Oak Leasing to help with the funding of equipment for both stores. Oak were superb getting the best deals, from the right people and in very tight turn round times.

They proved to be a one stop shop for our needs visiting and arranging documentation, dealing with our equipment suppliers and concluding all arrangements. The process was quick, efficient and trouble free.