Asset and equipment finance plays a key role in Business.
1. Access to assets without a large upfront cost:
Asset finance allows businesses to acquire the assets they need without having to pay the full cost upfront. This can help to preserve cash flow and working capital for other business needs.
2. Tax benefits:
Businesses can claim GST input tax credits and tax deductions on finance payments depending on the type of asset finance. Businesses are also eligible to claim the depreciating value of the asset, reducing their taxable income.
3. Flexibility in payments:
Asset finance can offer flexible payment options, like leasing, allowing businesses to align payments with asset-generated income. This is especially important for businesses with seasonal income such as farming.
4. Improved cash flow:
Asset finance can aid businesses in effectively managing their cash flow by distributing the cost of an asset over time.
5. Asset management:
Asset finance enables businesses to manage assets effectively by upgrading or replacing them as needed without large upfront investment.
6. Preservation of credit line:
Asset finance preserves a business’s credit lines by enabling it to acquire assets without using them up.
It’s best to seek professional advice before deciding on asset finance as advantages may vary by type.
Talk to the experts at Queensland Capital Solutions or book an appointment today!
