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1. How to finance new business equipment
Business planning
How to finance new
business equipment

2. 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 business
may need computers, vehicles, manufacturing machines, factory
equipment and is entirely dependent on the type of business you
are running.
Imagine the business equipment needs of a simple business like a
coffee shop, for example. You'll need to acquire, in addition to
business premises, one or more good quality coffee makers or
espresso machines, tables and chairs for your customers,
refrigeration units, storage units, a dishwasher and mugs and
serving ware. That's quite a list, and quite an outlay for a new
business - all before you open your doors. There are, however, a
number of different ways that you can acquire equipment and
other assets for your business without having to part with your
liquid assets by making payments up front.

3. How to finance new business equipment
Business planning
Operating Lease
An operating lease allows you to acquire the equipment you need
for your business without a large initial outlay. In addition, you
get up to 90% of the resale value.
The advantages of an operating lease include:
lower rental fees
the ability to use the equipment without owning it
there is no need to dig into other lines of credit to finance a
purchase
your rental fees may be deductible from taxes as operating
expenses
there are other tax advantages, including avoidance of
depreciation

4. How to finance new business equipment
Business planning
Asset Finance Lease
A finance lease allows you to use the equipment you need
without owning it. When the lease ends, you may get a
percentage of the resale profit in the form of a rental rebate.
The advantages of a business asset finance lease for your
equipment include:
Low initial expenses
Easily arranged through many vendors
Monthly fees are a fixed expense
Leased equipment is a balance sheet asset
Maintenance contract is often included as part of the monthly
rental fee
Use of equipment without ownership
Rental fees may be deducted from taxes as operating expense

5. How to finance new business equipment
Business planning
Frees up or preserves other lines of credit for other uses
A percentage of resale price may be available as a rental rebate
Hire Purchase
Hire purchase represents an excellent way to acquire equipment
without paying the entire cost up front. The advantages of hire
purchase include:
immediate use of the equipment that you need
fixed or variable rates of interest available on loans
the interest on your commercial loans may be tax allowable
consistent monthly payments make bookkeeping easier
ownership of the asset at the end of the payment term
can often be tailored with payment holidays or stepping payments
to allow the equipment to start generating profits
balance sheet asset

6. How to finance new business equipment
Business planning
Most manufacturers and suppliers will work with you in many
different types of finance and purchase arrangements. Once you
know the type of equipment you need, shop around to find out
what finance and purchase arrangements are available to you. A
trained business consultant may be of use in helping you decide
between asset finance and hire options.

7. How to finance new business equipment
Business planning
Discover how your business can purchase new assets and equipment without affecting
working capital using UK asset finance leasing. Visit Cash4Business at
http://www.cash4business.co.uk to find out how your business could benefit.
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