New equipment and technology, whether it’s computers, vehicles, or telecoms systems, are often significant prerequisites for business growth.But the often prohibitive cost can make many businesses think twice about these cash purchases. Asset financing is an alternative strategy to purchasing outright, allowing businesses to access capital for new equipment without endangering their cash flow.
Asset financing is a popular strategy for growing businesses for many reasons:
Unlock Growth Potential
When a business is experiencing growth and breaking into a market there are excellent opportunities to grow further. However, if you wait until you have made enough profit to buy your next major equipment upgrades, the opportunity may be lost, or another competitive might grasp it instead.
By being able to access new equipment as and when they need it, businesses are more agile, better able to take new opportunities that come their way, and ultimately more profitable.
Protect Your Cash Flow
Cash is like the blood pumping around the body of your business, without it things stop working! Even when a business is profitable and running well it is rarely a great idea to remove cash from the business; a lack of cash flow can cause you to miss both outstanding payments and new opportunities.
Asset financing protects your cash flow by turning what would have been a significant one-off payment into easy to pay, regular payments. Businesses can access key equipment without entering into short-term negative cash-flow.
Additionally, asset financing companies, like Zip Capital Group, can often get better equipment or a better deal than a small business. This is because by regularly providing asset finance, finance companies build up strong relationships with suppliers and specialist knowledge in that area. Your business will get better value and have better support than with more traditional finance options.
Startups with a limited financial history who struggle to get traditional bank financing, may well have better success with asset financing. This is also true for businesses with some bank financing but who have been refused an extension. With the expert knowledge that a specialism in asset finance brings, firms like Zip Capital Group are able to better assess your needs and suitability for such a financing.