2 Reasons To Finance Equipment Now
Ensuring that essential business equipment is current and in good condition is a priority for most business owners. Hence, the annual “End of Financial Year” sales present an enticing proposition as well as a common conundrum – how to purchase discounted equipment with limited budget whilst maintaining a healthy cashflow.
A potential solution can be to acquire the equipment on finance. An experienced asset finance specialist from Classic Funding Group will be able to provide a range of finance options based on the company’s objectives and cash flow position.
“Many of our business customers have told us that June is a great time for them to purchase equipment for their business, particularly vehicles”, says Alex Patsellis, a relationship manager at Classic. “Driven to meet their yearly sales targets, vehicle salesmen delight in their mandate to ‘discount and sell’. Our business customers call us to arrange same-day finance pre-approvals before heading out to take advantage of the dealership sales.”
Another potential incentive for businesses to acquire equipment this financial year is the proposed expanded accelerated depreciation budget measure. The proposed measure allows eligible small businesses to immediately deduct each asset that costs less than $20,000 and applies to assets acquired from 7.30pm, 12 May 2015 until 30 June 2017.
Acquiring an asset on a Secured Loan Agreement (also known as a Chattel Mortgage) enables the business to take ownership of the asset from the outset, thus qualifying for immediate depreciation, while enjoying the predictability of affordable monthly repayments.
Time is running out in F14/15, however, as the asset can only be depreciated in the year in which the asset is first used or installed ready for use.