EOFY purchases may be applicable and make a difference to your end of year tax position **
As we speed towards another end of financial year, it is a great time to review your assets and consider your business’ future needs.
Purchasing end of financial year equipment
For many businesses, acquiring the equipment they need to run their operations can be extremely difficult, if not impossible. This is where equipment financing comes in.
Equipment finance is a type of business loan that helps businesses get access to that equipment. They obtain it through a finance broker with the equipment used as collateral for the loan.
This means they don’t need to invest a large amount of capital, but can still launch, run or expand their operations. Equipment finance, also known as asset finance, takes care of the initial outlay. In the event of a default, there is a possibility that the equipment can be repossessed.
What is equipment finance used for?
Equipment finance can be used to purchase:
● Heavy machinery used for industrial businesses (manufacturing, construction, farm, agriculture) or industrial kitchen equipment
● Shop fit-outs
● Vehicles, including forklift trucks, vans or a fleet of cars (also known as vehicle finance)
● Office equipment such as computers, laptops, printers, desks, chairs and other furniture
● Technology, including high-tech equipment and servers
● Medical and scientific equipment
Advantages of equipment financing
● It means you don’t own obsolete equipment. There may be an option to upgrade the equipment at the end of the loan or it can be taken back by the financier
● If you fail to repay the loan, your business or property cannot be repossessed, only the asset secured by the loan
● Easier to obtain than a business loan – less stringent eligibility criteria and less paperwork required
Which type of equipment finance?
There are several different types of equipment financing available and we can help determine the one that’s right for you. We take into consideration a number of factors such as your business circumstances and the type of equipment needed.
** This is not tax advice. Seek independent advice from your accountant.
Contact Al Hattersley on 0431 733 881 to put the wheels in motion.