The financing of equipment can provide many benefits, and for some business models can be integral to their commercial success.
Whether you are purchasing replacement equipment, adding to an existing pool, or looking to set up a new business, naturally you will need to give some thought to how you are going to pay for your equipment.
Of course, the benefits to a business of acquiring our equipment do not come from owning it, but from using it, and therefore the method of funding used is often vital to commercial success.
There are usually a number of purchasing/financing options available, but the most common are:
Pay from your own cash resources
This gives you some initial flexibility but it also ties up your cash in the equipment for the next few years.
Take out a bank loan or using an overdraft
Whilst this is often a viable option, it can sometimes be difficult to find a bank that understands your business and your equipment requirements. It may therefore make more sense to keep any bank lines available for other financing, such as providing working capital or other less tangible costs.
Lease or Hire Purchase
Paying for the use of the equipment over time, drawing upon the income it generates, is often the most logical solution and accordingly is the most commonly used method of funding equipment purchases.
Many businesses turn to Lease or Hire Purchase as their preferred method of acquiring equipment, as it is flexible and overcomes many of the drawbacks of outright ownership. Once you’ve tied up capital in equipment it is locked away. By contrast, installment finance allows you to pay for the asset over its useful working life and means that you can utilise capital more efficiently and effectively.
At KOREC we are committed, together with our finance partner, to helping our customers secure the best finance options in the market place, providing impartial assistance with complete transparency and constructing tailor-made solutions to meet individual requirements. We are passionate about your business and want you to be successful.
For customers based in the UK, finance is arranged through United Asset Finance Limited who are authorised and regulated by the Financial Conduct Authority.
The following terms apply to the information supplied, to any finance quotations provided and to any current or future finance promotions: