Finance Options: Detail

The Benefits of Using Finance

There are many benefits of financing compared with other forms of acquisition. Those that are most important will differ from company to company and customer to customer, depending upon the circumstances at the time. We believe that the main benefits can be identified as:

1. Conserves cash reserves
Financing enables you to acquire the equipment you consider best for your business, without making a substantial lump sum payment out of your cash reserves which then can be used elsewhere in the business. Also the opportunity costs of using those reserves elsewhere are limited.

2. Maintains credit lines for other use
The equipment you need can be acquired without denting/impacting other credit lines, such as loans and overdrafts making further borrowing easier.

3. Financing can improve your cash flow
Instead of one substantial payment, the cost of the acquisition is spread over a number of monthly payments. In many instances these payments can be set to match seasonal cash flow circumstances and requirements.

4. Fixed Payments
Payments are fixed for the term of the agreement. You are protected from rising interest rates and you will always know the exact amount of future payments, enabling accurate budgeting and cash flow projections.

5. Payment Profile
Payment profiles can be structured to meet budgets, roll-out schedules and/or cash flow requirements. This is best achieved by discussing the phasing of the project and assessing the cash flow implications. In this way a payment structure can be proposed which truly matches individual requirements.

6. Tax Advantages
When opting for a contract hire agreement, the rentals can be deducted as pre-tax business expenses. As they are charged in full against income, they reduce your company's income tax and other taxes on income.

7. Balance Sheet
Modern financial controlling methods employ key financial indicators to monitor and guide the business development of a company. Unlike capital expenditures financed by borrowing, a contract hire facility is not necessarily 'on balance sheet'. As a result, a contract hire transaction does not have a negative impact on balance sheet ratios such as debt-to-equity ratios.

8. Choose the Equipment you NEED
When you lease you are not limited to purchasing the equipment you can afford to pay at the time. Monthly payments enable you to select the equipment that is most beneficial for the development and growth of your business by bringing additional value to your operations.

9. Easy Equipment Disposal
By returning used equipment to the supplier at the end of the lease term, you do not need to be concerned about equipment disposal issues or costs.

10. Administrative Ease
Maintenance costs can also be covered within the contract hire rentals, reducing the administrative burden on you to make many different payments. We will administer the maintenance payments for you to the appropriate supplier.