There comes a time when most businesses will need to access finance. Whether its raising working capital to cover cash flow gaps or seeking finance to fund growth plans.

Are you looking to hire additional staff, move to bigger premises, increase production capacity, diversify your product range, or spend more on marketing?

Accessing asset and equipment finance is one of the simplest and quickest ways to grow your business, and here are the reasons why.

New equipment can unlock an array of opportunities for your business, by allowing you to serve more customers, offer new services and improve efficiency. By servicing more customers – or serving your existing ones faster – you can increase your revenue and take advantage of growth opportunities that come your way.

Using finance to acquire this new equipment can help you spread the cost of expensive items over a manageable period. Even if you might be able to pay upfront for an asset, this might hurt your cash flow and affect your growth prospects.

Every business runs differently, therefore everyone’s finance needs are unique. Asset finance offers a range of different options, offering you the flexibility to structure deals to your specific needs.

The Australian Tax Office will also allow some lease payments to be treated as tax deductible expenses. Other lease payments are treated as depreciation expenses. (It’s important to talk to your accountant or tax adviser before entering into a finance agreement to ensure you understand the tax implications for your business).

A healthy cash flow is vital to sustaining a successful business. Exploring asset finance can help protect your cash flow, whilst still allowing you to acquire the equipment needed to support your growing business.

Case Study: Geoff needs a range of gardening equipment to operate his landscaping business and will most likely need to upgrade it every two or three years. The cost of new equipment is approximately $10,000 but Geoff uses equipment finance to spread the cost over two years, repaying a manageable $470 a month including interest, rather than $10,000 as an up-front lump sum. At the end of the two years Geoff will refresh his equipment, taking out a new financing contract to spread the cost once again.

Are you looking to purchase or upgrade any commercial assets? Or simply looking to increase your current cash flow? The team at Morris Finance can offer cost effective and strategically structured business finance solutions. Contact us today on 03 5223 3453 to discuss your options.