Maximizing cash flow and taxation benefits are two big draw cards when looking to finance cars & equipment through your business. However, with the number of finance options on the rise, many businesses are turning to financing these purchases over a period of time, rather than paying for them outright. Financing enables businesses to take advantage of two key benefits: greater control of cash flow as well as various tax benefits.
Cash Flow benefits
The preservation of working capital is a key benefit for when weighing up your options. Your need to consider whether working capital is better spent on other aspects of the business, such as paying debtors, advertising or even purchasing more inventory. You may be able to invest the money elsewhere to achieve a return exceeding that of the interest charges associated with financing.
The taxation benefits associated with financing staff vehicles is another key reason why many businesses are turning to finance. There are many different types of finance, each offering different tax benefits, therefore we recommend working closely with your accountant to identify what works best for you. In certain circumstances, financing your assets and equipment provides a an opportunity to claim various tax deductions, such as rental payments, interest payments and depreciation, thus minimising the amount of tax payable.
We make asset finance simple.
Financing your asset can be cost-effective, and with a us on your side it can also alleviate any pressures associated with lengthy applications and paperwork. We specialise in both consumer & commercial asset and equipment finance.
Reach out and we can chat you through your options!