The Asset Finance & Leasing Specialists

First Capital Finance specialise in the provision of competitive finance and leasing facilities for Business and Schools in the South of England and beyond

Preserve Your Cash

Posted by David Mogg, Director

Why choose to finance, rather than pay up-front?

If your business is in the enviable position of having cash on hand to purchase something as expensive as a new truck, car, van or an expensive piece of machinery, it may make more sense to borrow money instead of buying the asset outright?

Because choosing to finance the asset can save or even make you money!

Over the last few months so many businesses have struggled to maintain a positive cash flow – where outgoings exceed income. This is a situation that nobody foresaw and one that is likely to remain a threat for any business for a while yet in these uncertain times. This means it’s never been more important to maintain cash reserves to ensure your business can continue to operate day to day.

Many businesses have told us they can still see opportunities not just to maintain their current income levels but to expand and grow, but would need to invest in new machinery, an additional van, or the right new equipment to take advantage of the opportunity.

If you wait, someone else may take advantage of the opportunity in the market.  So how can you continue to invest to grow your business, whilst maintaining the working capital that ensures, whatever bumps are ahead in the road, you’ll still be in a position to keep your business running?

So again, is buying outright the best option?

It’s always a good idea to think about whether it’s the best use of your money. Financing an asset means:

  • you don’t have to pay the full cost up front and deplete your cashflow
  • buying means you may need to use bank facilities such as an overdraft or loan to fund the purchase – whilst these may be facilities already in place, they will cost, and overdrafts can be withdrawn at short notice and in some cases early repayment of loans can be demanded
  • you can easily spread the cost of finance to align to your own circumstances. This includes seasonal payments where your detailed cash flow requirements are listened to and the payment periods and amounts are tailored to meet them.
  • you will be able to take advantage of any tax benefits such as deducting the cost of rental from your taxable income or by offsetting the interest charges against tax.

Understanding our customers’ needs is at the core of our business, and we are on hand to help.  Financing your asset through us will give you peace of mind that you are dealing with a company that cares about your business.

We ensure that you have the added benefits of:

  • No broker fees
  • Easy paperwork process
  • Dedicated Account Manager who will look after you
  • Fixed APR, to enable you to budget
  • Market leading rates
  • Fast decisions
  • Flexible lending options including seasonal payments to fit around your business

So, in summary choosing to finance allows you access to purchase or lease the machinery, equipment or vehicles required to expand your business.  Purchasing often involves a large upfront cost but Asset Finance can offer an alternative way to buy new equipment without putting pressure on your business.

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