When a decision is taken to purchase new equipment the focus naturally tends to be on:
- The ability of the equipment to meet our specific requirements
- Improved quality
- Reduced cost
- Faster turnaround times
- Supplier reputation and their capacity to provide ongoing support. Availability of parts
This research and negotiation process can consume a lot of time and resources!
When the equipment and supplier has been chosen, it is natural to want the equipment as quickly as possible – but this is where problems can arise!
To avoid problems and later regret, it is important to invest the time to understand how Equipment Finance works and the options available.
Some common errors I address in the Equipment Finance Handbook include:
- Choosing the wrong product which can lead to an inability to leverage ownership, depreciation and tax benefits
- Focusing on the headline interest rate and not the total cost of the finance
- Not structuring repayments to cashflow (allowing for seasonality, installation, commissioning and revenue impact)
- Delays arising from not understanding the documentation and information requirements
- Having all your finance “eggs in one basket” – needlessly tying up security that could be used for other worthwhile purposes
- Engaging the business Accountant after finance has been approved and drawn
- Using generalist Financiers rather than an Equipment Finance Specialist
- Plus more…
I truly enjoy assisting my clients source the equipment they need.
From technology, to heavy machinery and large manufacturing equipment.
If you are thinking about investing in equipment for your business, don’t hesitate to give me a call.
The earlier you make contact in the process, the better!
To get started, download the Equipment Finance Handbook