I Want To Expand My Business, But Can’t Afford To
One of the biggest challenges facing small businesses is cash flow. Sometimes the difference between taking the leap from a small business to a medium-sized one is your ability to purchase assets that are critical to offering your clientele the level of service you desire. As a business owner, it can be frustrating when your cash flow simply isn’t there to support the purchase of a big -ticketed asset because you need it to maintain the regular running costs of your business. That’s where asset finance comes in. Asset finance allows you to borrow money to purchase equipment for your business. Let’s look at what an asset is and how asset finance can benefit your small business.
Just What Is An Asset?
The definition of a business asset is pretty broad. In essence, an asset is any piece of equipment such as, a car, truck, forklift, or other machinery which is used primarily for business purposes. However,business assets aren’t just limited to heavy duty equipment. A business asset could also consist of IT equipment, a business fit out, or signage. Commercial assets don’t have to be brand new, and don’t have to be something you buy outright. Asset finance is available under various types of leasing arrangements, chattel mortgage loans and hire purchases, which all allow for the purchase of goods for your business. The lender usually takes security over the asset and no other security is required.
Benefits Of Asset Financing
The most obvious benefit is that asset finance allows you to upgrade equipment without a significant impact on your cash flow, but there are other advantages as well. Purchasing assets for your business can allow you to access instant asset write-off for taxation purposes, which effectively reduces your business’s taxable income. The government have 3 different categories of asset write-off with differing eligibility criteria;
• Temporary full expensing
• Increased instant asset write-off
• Backing business investment
Take a look at for more details on asset write-offs here: https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/
How To Find Asset Finance
Did you know that we have access to multiple lenders who offer business asset finance, and we can help find you an option that suits your current and future business needs? If it’s time for you to expand, replace equipment and grow your business, then give us a call on 0479 081 117, we love to help.
Written by Jason Pestano