General equipment finance

When inquiring about general equipment finance, there are a couple of
important benefits that need to be considered:

1  GROW YOUR BUSINESS WITHOUT IMPINGING UPON YOUR CASH FLOW…

General equipment finance, otherwise known as asset finance, enables businesses to purchase essential operational equipment without tying up vital cash-flow. Of course, such facilities are subject to interest however,  if the equipment procured is solely used for business purposes, then the interest costs associated can be 100% deductible against business income, depending upon which facility is undertaken.  Such tax benefits, of course, reduce the actual costs associated with equipment finance agreements. Do these benefits outweigh up-front cash payment? This will depend upon where your business sits within its development phase.

At Ecolease, we are happy to discuss such issues with yourself or your accounts person, to determine the best financial arrangement for your business.

For further discussions, call us on 02 9416 0629 or more specifically Marian on 0412 741 590. Alternatively, send us an email to info@ecolease.com.au.

2  SIDE-STEP THE PIT FALLS OF OVER EXPOSURE

Picture this…

Since the business started you have had a great relationship with your bank.  They have always been there or, more to the point, a banking representative has been who just so happens to be a person, and a good one at that. This person over the years has listened and on many an occasion gone out of their way to assist you and your business with its financial needs. Good relationships. Good! And all’s going well.

But one day, no matter how much your banking representative may want to help you, and no matter how great a cause your business need may be, for some reason the bank simply can’t do it, or more to the point, will not do it. And whilst there may be a thousand and one reasons why they should, from their perspective, there is only one reason why they can’t…to do so would OVEREXPOSE them in your business. Overnight it seems you have become too great a risk for them. We have seen this happen on many an occasion.

Now we are not saying cease relationships with your current banking representative, but from a smart business perspective, consider diversifying your funding portfolio.

At Ecolease we have great relationships with many a banking/funder representative. What’s more, we have credibility when it comes to introducing quality customers and their business cases to them. This enables us to work closely with alternative financiers to organise the best financial solutions for your business in a way that side-steps the pit-falls of ‘over exposure’.

Again, call us on 02 9416 0629 (office) or 0412 741 590 (Marian), or email us at info@ecolease.com.au.