Asset finance for trades businesses.
Running a business in the building and construction industry involves spending money on equipment.
Whether it’s a second-hand $30k ute, or a $300k excavator, you need to finance these big purchases either from your cash flow or through financing.
Asset financing allows you to make these big purchases to grow your business sooner.
Often your bank will be able to assist with asset financing, or there are specialist asset finance brokers.
An asset finance broker will be able to compare finance offerings from different providers, and take into account interest rates, fees and other features to help choose the right option for your trades business.
They’ll also be able to help with the application process, and get that new piece of equipment into your business – and earning you money – as soon as possible!
It’s also worth speaking with your accountant to see what the most effective way of financing your equipment might be.
Should you finance equipment?
It would be great if we all had so much spare cash that we could pay in full for everything we needed.
Sure you could save up for that new $200k piece of equipment, but how much more revenue could you generate by having it working in your business today, rather than waiting another year or two?
That’s what you need to weigh up when considering if you should finance a piece of equipment or not.
Of course you also need to consider the impact of the repayments on your cashflow, and whether or not the new piece of equipment is going to deliver an acceptable return.
Your accountant and your asset finance broker can help with the numbers to see if it all stacks up.
Ultimately, if you want to grow your trades business, financing your equipment can be a great option.