Whether you own a budding enterprise or an established company, there comes a time when any organisation would benefit from additional financing. In most cases, finance is an essential step towards securing boosted business growth.
However, securing funding from traditional banks and lenders has become increasingly difficult, especially for SMEs with insufficient collateral.
The current unpredictability of the UK economy and the possibility of a recession in 2023 also presents increased risk of insolvency to businesses due to rises in costs.
As a result, if you want to acquire new equipment to upscale your services or produce higher-quality products with diminished risk, equipment leasing could be key to your ensuring your business progress, allowing you to make crucial investments while spreading the cost and protecting your cash flow
In this article, we explain how this form of alternative finance works, as well as the business advantages of equipment leasing.
What is equipment leasing?
Simply put, an equipment lease is a type of extended rental agreement. It means that the equipment is in your possession, to be used by your business as you make regular payments for it.
The terms of equipment leasing also allow for an increased level of flexibility for your business. At the end of the lease agreement, you have the option to continue making payments for the continued usage, upgrade the equipment for more up-to-date technology, or return it.
What are the advantages of equipment leasing?
Improve cash flow
Equipment finance allows you access to crucial assets without having to face large upfront costs. You can also protect your vital cash flow by spreading the cost through regular, manageable payments.
Protect existing lines of credit
Securing this form of finance for new business equipment allows you to retain other traditional finance options, such as bank loans and overdrafts.
You can gain access to the equipment you need to upscale your business with the peace of mind that finance lease rentals are not affected by interest rates. When you understand what expenses you can expect for your business in the future, you can budget accurately for regular direct debit payments.
With equipment leasing, you may benefit from tax relief for the duration of your agreement, as finance lease rental payments can be 100% tax deductible against your profits.
Keep up to date
Once you are leasing the equipment you need, you can upgrade it at any time to gain access to state-of-the-art technology, allowing your business to maintain a competitive edge.
You can hire almost anything business-related
The option of equipment leasing is suitable for businesses in most business sectors, with many different asset finance options available.
Here is a selection of what you might choose to lease:
- Gym equipment
- Catering equipment
- IT equipment
- Security equipment
- Dairy cattle finance
- Farming equipment
If you are not sure if your business needs are applicable to equipment leasing, get in touch with our team of experts today to explore your options.
Instant access to equipment
Equipment leasing allows you instant access to the equipment you need without having to source the funds for a large upfront investment.
Equipment Leasing from Shire Leasing
At Shire Leasing, we understand that a lack of sufficient funding can be what stands in the way of you and your business ambitions, but with our range of bespoke finance options, it doesn’t have to be this way.
For more information on how alternative finance solutions from Shire Leasing can help you reach your business goals get in touch with our finance experts.
Your equipment can be delivered and ready to use without needing to cut back on spending in other areas.