Competitive Office Equipment Loans!

Starting up a business can be a daunting task, as necessary financial backing, initial outlays and even standard business protocols can pile up beyond all expectation. Being faced with limited financial resources when building up a client base can make or break a new business, so office equipment finance may help when it comes to getting off the ground.

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    Published On Date 06/12/2021 by Dana Boyd

    Why Might you Need Equipment Finance

    A new business will need specific equipment, furniture and the latest technologies to be able to function at full capacity – and in the current competitive business climate, having the ability to deliver a service not only in the right manner, but efficiently too; can help a business to outclass the competition.

    At the same time, running a successful office can sometimes be faced with unexpected complications and you may find your business in need of financial help when it comes to upgrading your current facilities.

    A well-run company with a fully functioning office will mean satisfied clients – and ultimately a successful business venture for you. Having access to the right equipment will ensure that you will have the necessary means to achieve this goal. You may need financing for:

    • Up-to-date computer systems
    • Laptops
    • The latest versions of specific computer software
    • Smart phones
    • Tablets
    • Company phone systems
    • Printing facilities
    • Fax machines
    • Office furniture

    When finding the right financial backing is an issue, opting to finance the necessary office equipment could help your business to go from strength to strength.

    The Benefits of Financing your Office Equipment

    Making the most of equipment financing options can allow you to have better cash flow in your business. Cash is key, if you have better cash flow,  you will be able to delegate any surplus funds for other important obligations.

    Although financing office assets won’t require as large a sum as other financing options (such as medical equipment financing), it’s still important to opt for a more specific lender. Standard business loans may be unsuitable for those who are new to business. Specific financing may be better suited to your needs, as equipment financing lenders will better understand your businesses requirements. Offering more tailored loan amounts and loan term to suit your cash flow.

    Leasing office equipment is an alternative option, where you do not own the equipment. This can be a sensible option for some, so consider your current situation, financial needs and business aspirations before you decide which option is best for you. For advice around the leasing versus a finance loan and the tax benefits, we would recommend speaking with your accountant or financial adviser.

    FAQ

    Getting finance to purchase office equipment means that you don’t need to pay for it upfront. You can receive the purchase price funds required from a lender and pay it back over a specified period while having use of the equipment for your business.

     

    It is a convenient way to finance office equipment without having to make a large capital outlay that could impact your cash flow or balance sheet.

    The main benefit of financing the purchase of office equipment is that you can invest in your business without tying up capital or impacting your cash flow. It means you can acquire the equipment without having to provide the funds yourself and then repay them over time. This helps to avoid the risks of having such a large capital expenditure on your balance sheet.

     

    Both large and small businesses use equipment financing as a way to make large capital expenditures while managing their cash flow and the company’s balance sheet. It allows you to acquire office equipment for your business whilst also avoiding the uncertainties that are associated with large capital expenditures.

    There are four main types of loans available for office equipment financing:

     

    • Finance Lease. In this type of financing the office equipment is owned by you (the lessee) and is not on your balance sheet. Payments made in full for its financing are tax-deductible. At the end of the finance term, the office equipment is returned to the finance provider (the lessor) or purchased by you for an agreed price.
    • Operating Lease. In this type of financing the office equipment is owned by the lessor and is not on your balance sheet. Payments made in full for its financing are tax-deductible. At the end of the finance term, the office equipment can be returned to the lessor or purchased by you for an agreed price.
    • Commercial Hire Purchase. In this type of financing the office equipment is owned by you and is categorised as on your balance sheet. In this type of financing, only the interest portion of your payments is tax-deductible but you can claim depreciation costs for the office equipment. At the end of the finance term you own the office equipment (although in some cases a final, residual payment may be required).
    • Chattel Mortgage. This type of financing is like a traditional secured loan where the office equipment acts as security for the loan. Like the previous financing method, the office equipment is owned by you, the interest component is tax-deductible and you can claim for depreciation costs. At the end of the finance term, you own the office equipment outright.

     

    The type of financing you choose for your office equipment will depend on your specific business needs including the tax implications of payments and depreciation costs, whether you want it on your balance sheet and whether you want to have ownership of the office equipment the end of the finance term (and whether you have to make an additional payment).

    Applying for a loan to finance the purchase of your office equipment couldn’t be easier. Simply complete the form at https://equipmentloansonline.com.au/application-for-finance and a broker will be in touch with you to discuss your office equipment finance needs.

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