Many small business owners make the mistake of using cash flow funding to purchase equipment. There are other options such as Equipment Finance when looking for these types of purchases.
Why should I look to Equipment finance (EF)? EF terms are longer, and rates are, more often than not, cheaper. This helps reduce the pressure of cashflow with lower weekly or monthly repayments.
We recently helped a client (Electrician) fund the purchase of electrical tools of the trade. Being an unusual scenario, standard EF finance was difficult with his bank, the client contacted us for cash flow finance however after discovering what his funding requirements were for, we found a suitable funder to fund the $30,000 purchase over 5 years.
The client was able to get the monthly repayment to $726 month (or $167 a week). The same loan with a cash flow lender would have been over 12 months with repayments of $2,930 per month (or $676 per week). The rate of interest was also half of the cash flow options.
If you are looking to upgrade your tools of the trade or any equipment finance including cars, trucks, machinery or more we can help secure the best option for you.
AMOUNT
$5K – $200k |
TERMS
2 – 7 Years |
RATES
From 4% |
SPEED
from 2 Days |