Financing Options to Buy or Lease
Hospitality and Catering businesses in Australia understand the importance of having the right equipment to deliver exceptional service and delicious food to their clients. From commercial ovens and refrigeration units to professional grade cookware and utensils, the right equipment is crucial for the success of their business.
However, purchasing these essential items can require a significant upfront investment, which is not always feasible or the best way to invest your hard earned capital. This is where equipment finance comes in. Equipment finance offers a viable solution to obtain the necessary equipment without straining the companies cash flow which could be put to better use elsewhere in your business.
If you’re interested in learning more about accessing equipment finance to fund a purchase, click get a quote below and someone will be in touch with you shortly.
Advantages of Equipment Finance
Access to Up-to-Date Equipment
Equipment finance allows you to access the latest and most modern equipment without the need for a large upfront investment. Whether it is high-quality commercial ovens, refrigeration units, or food preparation equipment, staying up to date with the latest technology can greatly enhance the efficiency and quality of your services.
Flexible Repayment Options
Equipment finance offers a range of flexible repayment options tailored to specific needs and circumstances. With options like lease-to-own or equipment rental agreements, businesses can choose terms that align with their cash flow patterns and revenue generation, ensuring that monthly repayments are manageable and budget-friendly.
Improved Cash Flow
Opting for equipment finance instead of purchasing equipment outright can help preserve valuable working capital. By spreading the cost of acquiring equipment over a fixed repayment period, you can maintain a steady cash flow and allocate funds to other areas of your business, such as marketing, staff training, or expansion plans.
Tax Benefits
Yes, in most cases, the interest paid or the actual repayments themselves on an equipment loan can be deducted as a business expense for tax purposes.
Frequently Ask Questions
What is the interest rate on equipment finance
The interest rate varies depending on your credit score, loan amount, loan term, and the lender.
What is the typical term for equipment finance?
Loan terms vary, but typically range from one to seven years.
What is the difference between a lease and a loan?
A loan enables you to own the equipment at the end of the term, whereas a lease may offer lower monthly payments and allows for easy upgrades to new equipment.
Do I need a good business credit score for equipment financing?
A good credit score can increase the likelihood of approval and secure better terms, but options may exist for businesses with lower scores.
Are there any tax benefits to equipment finance?
Yes, in many cases, the interest paid on an equipment loan can be deducted as a business expense for tax purposes.
Can I lease equipment instead of buying?
Yes, equipment leasing is an option. This can be an attractive choice for businesses that require the latest technology and prefer to upgrade equipment regularly.
Can I include installation, maintenance, and other costs in my loan?
This varies by lender. Some may allow the inclusion of related costs, while others finance only the equipment purchase price.