How​ ​to​ ​Select​ ​Equipment​ ​Finance​ ​for  Your​ ​Business    Arranging​ s​ mall​ ​business​ ​loans​​ ​car​ ​finance​ ​or​ ​purchasing​ ​other​ ​business​ ​equipment​ ​can​ ​seem  complicated.​ ​However,​ ​there​ ​is​ ​a​ ​range​ ​of​ ​flexible​ ​Equipment​ ​Finance​ ​options​ ​to​ ​suit​ ​your​ ​business  and​ ​provide​ ​you​ ​with​ ​more​ ​opportunity​ ​to​ ​use​ ​your​ ​working​ ​capital​ ​to​ ​help​ ​grow​ ​your​ ​business.  Options​ ​include​ ​an​ ​equipment​ ​loan,​ ​hire​ ​purchase​ ​or​ ​finance​ ​lease​ ​agreement.   

    Many​ ​businesses​ ​don’t​ ​have​ ​enough​ ​available​ ​cash​ ​to​ ​consider​ ​an​ ​outright​ ​purchase,​ ​making  Equipment​ ​Finance​ ​a​ ​necessity.​ ​Even​ ​if​ ​you​ ​can​ ​afford​ ​it,​ ​you​ ​want​ ​to​ ​put​ ​your​ ​money​ ​to​ ​good​ ​use  and​ ​investing​ ​cash​ ​in​ ​assets​ ​leaves​ ​you​ ​with​ ​less​ ​working​ ​capital​ ​to​ ​finance​ ​operations​ ​or​ ​explore  new​ ​growth​ ​opportunities.​ ​The​ ​flexibility​ ​of​ ​Equipment​ ​Finance​ ​allows​ ​you​ ​to​ ​align​ ​repayments​ ​to  suit​ ​your​ ​cash​ ​flow​ ​and​ ​you​ ​may​ ​be​ ​able​ ​to​ ​claim​ ​tax​ ​deductions.    For​ ​example,​ ​if​ ​you​ ​run​ ​a​ ​delivery​ ​business,​ ​it’s​ ​not​ ​necessary​ ​for​ ​you​ ​to​ ​pay​ ​upfront​ ​for​ ​all​ ​the​ ​vans  you​ ​use.​ ​You​ ​might​ ​use​ ​a​ ​range​ ​of​ ​finance​ ​options,​ ​from​ ​an​ ​equipment​ ​loan,​ ​hire​ ​purchase​ ​or​ ​a  finance​ ​lease.​ ​Using​ ​these​ ​products​ ​gives​ ​your​ ​business​ ​the​ ​opportunity​ ​to​ ​use​ ​the​ ​vans​ ​in​ ​exchange  for​ ​regular​ ​payments,​ ​rather​ ​than​ ​paying​ ​the​ ​full​ ​lump​ ​sum​ ​upfront.    EXPLORING​ ​YOUR​ ​EQUIPMENT​ ​FINANCE​ ​OPTIONS    The​ ​first​ ​step​ ​is​ ​to​ ​explore​ ​the​ ​options​ ​available.    Equipment​ ​loan   

Taking​ ​out​ ​an​ ​equipment​ ​loan​ ​can​ ​be​ ​an​ ​effective​ ​way​ ​to​ ​finance​ ​business​ ​equipment​ ​purchases,  especially​ ​if​ ​it’s​ ​important​ ​to​ ​you​ ​to​ ​own​ ​the​ ​asset​ ​from​ ​the​ ​outset.​ ​Businesses​ ​can​ ​usually​ ​get​ ​a​ ​loan  for​ ​the​ ​full​ ​cost​ ​of​ ​the​ ​goods​ ​(no​ ​upfront​ ​deposit)​ ​with​ ​the​ ​asset​ ​itself​ ​serving​ ​as​ ​security​ ​for​ ​the​ ​loan.  Generally,​ ​the​ ​interest​ ​you​ ​pay​ ​plus​ ​the​ ​depreciation​ ​of​ ​the​ ​asset​ ​is​ ​tax-deductible​ ​to​ ​the​ ​extent​ ​the  asset​ ​is​ ​used​ ​in​ ​your​ ​business.    The​ ​advantage​ ​of​ ​an​ ​equipment​ ​loan​ ​is​ ​that​ ​it​ ​doesn’t​ ​tie​ ​up​ ​all​ ​your​ ​available​ ​cash​ ​and​ ​generally  doesn’t​ ​require​ ​additional​ ​security,​ ​enabling​ ​you​ ​to​ ​use​ ​your​ ​available​ ​cash​ ​and​ ​credit​ ​lines​ ​to  generate​ ​income.​ ​Ownership​ ​passes​ ​to​ ​you​ ​immediately​ ​and​ ​your​ ​bank​ ​registers​ ​a​ ​goods​ ​mortgage  over​ ​the​ ​asset.   

    An​ ​equipment​ ​loan​ ​can​ ​be​ ​tailored​ ​to​ ​suit​ ​your​ ​business’​ ​cash​ ​flow,​ ​with​ ​a​ ​range​ ​of​ ​repayment  options.​ ​You​ ​can​ ​also​ ​choose​ ​to​ ​reduce​ ​the​ ​loan​ ​amount​ ​and​ ​the​ ​related​ ​finance​ ​costs​ ​by​ ​adding  some​ ​equity​ ​through​ ​a​ ​deposit​ ​or​ ​trade-in.    Hire​ ​purchase    If​ ​you​ ​want​ ​to​ ​own​ ​the​ ​latest​ ​equipment​ ​and​ ​vehicles​ ​but​ ​preserve​ ​your​ ​available​ ​cash,​ ​then​ ​a​ ​Hire  Purchase​ ​(HP)​ ​agreement​ ​might​ ​suit​ ​you.​ ​With​ ​an​ ​HP​ ​agreement,​ ​your​ ​bank​ ​buys​ ​the​ ​equipment​ ​you  need​ ​and​ ​hires​ ​it​ ​to​ ​your​ ​business​ ​for​ ​an​ ​agreed​ ​period.   

Like​ ​an​ ​equipment​ ​loan,​ ​an​ ​HP​ ​agreement​ ​doesn’t​ ​tie​ ​up​ ​available​ ​cash​ ​and​ ​generally​ ​doesn’t​ ​require  additional​ ​security.​ ​Similar​ ​to​ ​the​ ​treatment​ ​of​ ​the​ ​equipment​ ​loan,​ ​depreciation​ ​of​ ​the​ ​asset​ ​and​ ​the  interest​ ​potion​ ​of​ ​any​ ​lease​ ​repayment​ ​may​ ​be​ ​tax​ ​deductible.    Finance​ ​Lease    Leasing​ ​also​ ​allows​ ​you​ ​to​ ​get​ ​the​ ​latest​ s​ mall​ ​business​ ​loans​​ ​equipment​ ​and​ ​vehicles​ ​with​ ​no​ ​capital  outlay.​ ​Your​ ​bank​ ​owns​ ​the​ ​asset​ ​and​ ​leases​ ​it​ ​to​ ​you​ ​for​ ​an​ ​agreed​ ​period.​ ​The​ ​rentals​ ​are  structured​ ​with​ ​a​ ​residual​ ​value​ ​–​ ​giving​ ​you​ ​options​ ​at​ ​the​ ​end​ ​of​ ​the​ ​lease​ ​period.​ ​The​ ​lease  payments​ ​may​ ​be​ ​claimed​ ​as​ ​a​ ​tax​ ​deduction,​ ​to​ ​the​ ​extent​ ​the​ ​asset​ ​is​ ​used​ ​in​ ​the​ ​business.    The​ ​advantage​ ​of​ ​having​ ​a​ ​residual​ ​value​ ​is​ ​that​ ​your​ ​monthly​ ​payments​ ​will​ ​be​ ​lower,​ ​placing​ ​less  strain​ ​on​ ​your​ ​cash​ ​flow.​ ​However,​ ​if​ ​you​ ​want​ ​to​ ​eventually​ ​own​ ​the​ ​asset,​ ​you​ ​can​ ​make​ ​an​ ​offer​ ​to  purchase​ ​(plus​ ​GST).    Equipment​ ​Capital​ ​Lease    If​ ​you’re​ ​looking​ ​for​ ​vehicle​ ​finance​ ​as​ ​part​ ​of​ ​a​ ​salary​ ​package​ ​for​ ​employees,​ ​a​ ​Novated​ ​Lease​ ​can  be​ ​structured​ ​to​ ​help​ ​staff​ ​maximise​ ​their​ ​salary​ ​package​ ​while​ ​reducing​ ​costs​ ​for​ ​your​ ​business.​ ​A  Novated​ ​Lease​ ​is​ ​essentially​ ​a​ ​three-way​ ​arrangement​ ​between​ ​the​ ​financier,​ ​your​ ​business,​ ​and​ ​the  employee.​ ​The​ ​financier​ ​owns​ ​the​ ​asset​ ​and​ ​leases​ ​it​ ​to​ ​the​ ​employee.​ ​Your​ ​business​ ​pays​ ​the​ ​lease  on​ ​the​ ​vehicle​ ​out​ ​of​ ​the​ ​employee’s​ ​pre-tax​ ​income,​ ​and​ ​the​ ​vehicle​ ​remains​ ​the​ ​responsibility​ ​of  the​ ​employee​ ​if​ ​they​ ​leave​ ​your​ ​business.​ ​This​ ​also​ ​allows​ ​employees​ ​to​ ​choose​ ​the​ ​vehicle​ ​they  want​ ​and​ ​shop​ ​around​ ​to​ ​find​ ​the​ ​best​ ​deal,​ ​reducing​ ​business​ ​administration​ ​costs​ ​associated​ ​with  buying,​ ​maintaining​ ​and​ ​selling​ ​company​ ​cars.​ ​As​ ​an​ ​added​ ​benefit​ ​individuals​ ​may​ ​avoid​ ​some​ ​GST.  The​ ​bank​ ​pays​ ​and​ ​may​ ​be​ ​entitled​ ​to​ ​claim​ ​the​ ​upfront​ ​GST,​ ​and​ ​the​ ​employer​ ​generally​ ​pays​ ​and  may​ ​be​ ​entitled​ ​to​ ​claim​ ​the​ ​GST​ ​on​ ​payments.​ ​Fringe​ ​benefits​ ​tax​ ​implications​ ​for​ ​a​ ​Novated​ ​Lease  should​ ​be​ ​discussed​ ​with​ ​your​ ​accountant.    IT​ ​rental    Office​ ​and​ ​technology​ ​equipment​ ​can​ ​date​ ​very​ ​quickly.​ ​Leasing​ ​this​ ​sort​ ​of​ ​equipment​ ​can​ ​help​ ​you  keep​ ​costs​ ​down​ ​while​ ​enabling​ ​your​ ​business​ ​to​ ​stay​ ​up-to-date.​ ​You​ ​also​ ​get​ ​a​ ​choice​ ​of​ ​rental  payment​ ​options​ ​and​ ​either​ ​return​ ​the​ ​equipment​ ​at​ ​lease​ ​end​ ​or​ ​offer​ ​to​ ​purchase​ ​it.​ ​Rentals​ ​are  usually​ ​tax​ ​deductible​ ​to​ ​the​ ​extent​ ​the​ ​equipment​ ​is​ ​used​ ​in​ ​your​ ​business.    Sale​ ​and​ ​Lease/Hire​ ​Back    Even​ ​if​ ​you​ ​already​ ​own​ ​equipment,​ ​you​ ​can​ ​free​ ​up​ ​your​ ​cash​ ​with​ ​a​ ​Sale​ ​and​ ​Lease/Hire​ ​Back  solution​ ​that​ ​lets​ ​you​ ​sell​ ​your​ ​equipment​ ​to​ ​a​ ​bank​ ​and​ ​they​ ​lease/hire​ ​it​ ​back​ ​to​ ​you.    CASH​ ​FLOW​ ​CONSIDERATIONS    Knowing​ ​how​ ​your​ ​business​ ​will​ ​be​ ​impacted​ ​when​ ​you​ ​finance​ ​equipment​ ​is​ ​important.​ ​You​ ​should  prepare​ ​a​ ​cash​ ​flow​ ​forecast​ ​together​ ​with​ ​your​ ​accountant​ ​to​ ​see​ ​how​ ​the​ ​new​ ​financing​ ​will​ ​affect  your​ ​bottom​ ​line.   

If​ ​your​ ​business​ ​is​ ​affected​ ​by​ ​seasonal​ ​cash​ ​flow​ ​variations​ ​you’ll​ ​need​ ​to​ ​structure​ ​your​ s​ mall  business​ ​loans​​ ​Finance​ ​Lease,​ ​Hire​ ​Purchase​ ​and​ ​Equipment​ ​Loan​ ​repayments​ ​to​ ​suit​ ​your​ ​business’  anticipated​ ​cash​ ​flow.    Knowing​ ​how​ ​and​ ​when​ ​your​ ​equipment​ ​will​ ​generate​ ​income​ ​will​ ​help​ ​you​ ​determine​ ​the​ ​best​ ​way  of​ ​paying​ ​for​ ​it.​ ​You​ ​should​ ​also​ ​assess​ ​the​ ​expected​ ​productive​ ​life​ ​of​ ​an​ ​asset.​ ​This​ ​way​ ​you​ ​won’t  have​ ​to​ ​finish​ ​paying​ ​for​ ​an​ ​asset​ ​beyond​ ​its​ ​useful​ ​life​ ​or​ ​pay​ ​for​ ​a​ ​piece​ ​of​ ​equipment​ ​too​ ​quickly,  putting​ ​stress​ ​on​ ​your​ ​cash​ ​flow.    Chatting​ ​with​ ​your​ ​accountant​ ​and​ ​NAB​ ​Small​ ​Business​ ​Banker​ ​will​ ​help​ ​ensure​ ​you​ ​get​ ​the​ ​right  small​ ​business​ ​loans​​ ​Equipment​ ​Finance​ ​package​ ​tailored​ ​to​ ​your​ ​budget​ ​and​ ​business​ ​needs.    Contact​ ​Details    Ascentium​ ​Capital  23970​ ​US-59,  Kingwood,​ ​TX​ ​77339  (866)​ ​722-8500  Website:  https://ascentiumcapital.com/finance-solutions/small-business-loans-and-working-capital  Google​ ​Folder:​ ​https://goo.gl/eTt2Dt  https://www.youtube.com/watch?v=PkY8fXFhFP4    Recommended​ ​Links    financing  small​ ​business​ ​loans  small​ ​business​ ​loans  equipment​ ​financing  equipment​ ​leasing  short​ ​term​ ​business​ ​loan  equipment​ ​leasing​ ​companies  equipment​ ​financing​ ​companies  equipment​ ​lease  leasing​ ​equipment  construction​ ​equipment​ ​financing  new​ ​equipment​ ​leasing  business​ ​equipment​ ​financing  commercial​ ​equipment​ ​financing  restaurant​ ​equipment​ ​finance  restaurant​ ​equipment​ ​financing  business​ ​equipment​ ​leasing  equipment​ ​lease​ ​financing  finance​ ​equipment  equipment​ ​finance​ ​software  equipment​ ​leasing​ ​company  what​ ​is​ ​equipment​ ​financing  equipment​ ​finance​ ​agreement 

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