Key factors to consider when purchasing equipment
If your business is looking to purchase or upgrade existing equipment there are a range of factors you will need to consider before doing so. Below are six key factors to consider before you purchase major equipment.
Research
If you are looking to make a new purchase, you will need to ensure you research the product before purchasing it to make sure it will be suitable for your business’s needs. If there are other industries that have purchased the same equipment it may be beneficial to talk to them about the equipment, what they like about it and if there have been any issues with it.
When researching it is important to define your needs and what the business needs. This will help you decide whether it is a necessary purchase or whether there could be a different alternative.
Check the supplier’s reputation
It is crucial you buy your equipment from a reputable supplier. Take the time to speak with a number of suppliers and ask as many questions as you can to get the necessary information you need to make an informed decision. It may be beneficial to use a local supplier as it improves flexibility, provides control and has less supply chain costs.
Assess your needs
When purchasing new equipment for your business it is important to consider what your business actually needs. Look into whether it will be more beneficial for your business to purchase new equipment or second hand.
It is important to look into how reliable the equipment is, whilst weighing up whether you would be better off leasing, hiring, or purchasing the equipment.
Consider your budget
When considering your budget it is a good idea to reflect on the qualities the equipment brings to your business. These may consist of reliability, capacity, efficiency, environmental impacts, and quality of performance.
Maintenance Cost
Maintenance is another factor to take into consideration. It is important to understand the cost involved in running the equipment and maintaining it, and whether you are going to be able to afford these maintenance costs.
Depreciation Rate
All equipment and machinery will lose its value over time. This means that when purchasing equipment or machinery think about how long it will last while giving you a high level of value. It is beneficial to look at the materials used and whether or not its structure can withstand the elements, stress and strain of the workplace.
Contact Morris today on 1300 4 MORRIS and speak to one of our finance specialists to see how we can assist you with financing your next equipment purchase.
