Top Tips for Choosing the Right Equipment Finance to Suit Your Business

In order to be productive and profitable, every business needs the right equipment. Whether you are a new start up or planning growth, you may not necessarily have the capital or cash flow needed to properly equip your business. Fortunately, there are a number of equipment finance options to assist you.  Experienced equipment finance brokers can help you to obtain the right type of business equipment finance, but it is a good idea to have a good idea of your requirements.

Determine What You Are Looking For:

Equipment finance is available for businesses looking to purchase vehicles, heavy equipment such as forklifts, trucks, office equipment, plant equipment or manufacturing equipment. In order to obtain the best business equipment finance, you will need to know what exactly you are looking to finance. This will not only give you an idea of the amounts you are looking for, but will allow you to compare the deals to the cost of using your business capital. In some cases, it may be more economical to use finance or vice versa, so you need to be aware of your costs.

Know Your Equipment Finance Options:

Although experienced and specialist equipment finance brokers tend to offer a wide selection of options, not all brokers have access to every type of equipment finance. Therefore, it is important to understand these different options to determine which is best suited to your particular requirements. The most common form of equipment finance is a lease. This option allows you to enjoy use of the equipment while the credit provider retains ownership. This type of arrangement allows you to utilise more costly equipment which would otherwise be financially unfeasible. Commercial hire purchase offers a similar arrangement, but at the end of the hire period, making the final installment allows you to transfer ownership of the equipment to your business. Another option for equipment finance is a chattel mortgage. This arrangement allows you to borrow the funds you need to purchase the chattel or equipment you need. Typically, you need to provide some form of security for the loan to reduce the risk for the lender. Finally, equipment rental is another option in which the credit provider purchases the equipment you require allowing you to rent it for a typically fixed period of five years. 

Get the Right Advice:

Although you may find that many companies offer business equipment finance, it is important to get the right advice. Choosing the wrong finance package can have long term implications for the stability of your business. It is important to speak to equipment finance brokers with experience and expertise, with the knowledge about standard requirements and policies for different types of equipment finance packages. This will help you to have all the facts you need to make an informed decision and proceed forward with the deal best suited to the specific requirements of your business.

If you are in need of equipment finance, contact us. We are a specialist equipment finance brokers and our team of advisors would be happy to answer any questions or queries you may have. We would be delighted to assist you in finding the best business equipment finance to help your business flourish.