3 Ways to Save Money on Your Business Equipment Finance

If you are planning on procuring business equipment, then equipment financing is one easy and hassle-free way to achieve it. They prove to be a wonderful option especially if you don’t have sufficient cash flow or proper credit score to buy it at its upfront cost.  It also makes it fairly easy if you wish to replace your older equipment with the latest model at the completion of your lease tenure.

Plus, if you are smart enough, then you can also save on your equipment finance. Here are 3 ways by which you can also save money on your lease.

1. Focus On Getting The Right Equipment Loan

The first step to saving money on your business equipment loan is to opt for the right financing option and agency. Don’t end up with a working capital loan to procure your equipment as then you will have to overpay. Such finances don’t put too much importance on the equipment serving as the loan collateral. In fact, they tend to hold a higher rate of interest irrespective of what collateral you possess or in what manner you intend to utilise the finance proceeds. 

Loans specifically meant for equipment are more easily accessible. They are also very reasonable to maintain. So before you sign on any dotted lines, ensure you find the right financing company who offers quality equipment loans with manageable rate of interests and easy approvals for your business equipment. 

Associating with them will give you a better chance to save money at the end of every month.

2. Choose A Loan Term Best Suiting Your Equipment

A top equipment finance company in Brisbane will offer you both short and long term financing options based on the equipment you want to cover. 

Like for example- if you wish to procure heavy equipment which comes with a long utility span, then you can go for long-term equipment finance. The lease cost will be much lower than the upfront price of the new machine. 

Contrarily, if you opt for a computer or something similar with a shorter lifespan, then it is best to go for a short-term finance lease.

The wise thing would be to discuss these matters with your chosen equipment loan broker operating in Brisbane and sort out which loan term will suitable for you.

3. Be Clear Of Your Tax Benefits

Irrespective of the equipment loan chosen; you will get some tax benefits in the process which resultantly will help you save money. Lease payments are regarded as operational expenses and are tax-deductible. 

Plus, as you lease your business equipment; you may not need to record its overall market price as a capital gain. This is because even if you intend to purchase it later on; you are not the owner of the equipment. As you don’t need to pay for the appreciation cost or record losses or gains; you can save lots of money in the process.

Keep these tips in mind to save money on your equipment finance. And always go with a finance company having a prominent reputation in the market.