Motivating Mum

Guest post brought to you in collaboration with Flexicommercial

For small business owners, getting financing for their business can be frustrating. Banks have not been kind when it comes to lending money to small businesses and the hurdles involved with a loan application can be quite daunting.

Fortunately, many small business owners have realised that they don’t have to deal with the scary banks to get commercial financing!

Take control of your cash flow

For small businesses, a healthy cash flow is critical for survival and many operators struggle to get the funds they need to invest in new technology and equipment. It could be that you’re looking for a new computer or a new printer or maybe you’re looking for a new piece of equipment for a beauty clinic.

Instead of applying for a business loan, you can choose to lease equipment for your business with asset finance. You don’t have to find the cash upfront to purchase new technology and instead make convenient monthly payments for the use of the equipment through your lease term. This helps to keep your cash flowing and it’ll be easier to budget for the expense.

Leasing is also easy – many suppliers may offer it as a type of vendor finance so you can work with someone you trust and avoid being rejected or confused by a complicated loan application.

Things to know about leasing

Leasing is a great way to get finance for your business equipment without needing to deal with the banks. There are a few things you should know before you sign your lease agreement:

• Ownership – when you lease equipment, you’re paying for the use of the asset, as you do with rental property or office space. This means that at the end of the lease, the ownership of the equipment remains with the finance provider.
• Tax – your monthly payments on your equipment lease may be tax deductible. You should speak with your tax advisor to find out more and to help you make an informed decision.
• Maintenance – in most equipment leasing arrangements, the business will be responsible for maintaining the equipment and keeping it in good working order. You should check your agreement to know exactly what costs you’ll be responsible for.
• End of lease – at the end of your lease term, you’ll often have a few options. You can upgrade to new equipment and sign a new lease or you may be able to extend your lease if you want to keep using the equipment you have or you can simply return it. Some finance providers may also give you the option to purchase the equipment for an agreed price.

Research your finance options to find a solution that works for your business – there are plenty of options outside of a bank loan.

Author Bio: Paige writes articles and tips for small business, including information on leasing and vendor finance.

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