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As technology continues to advance and become an integral part of business operations, it's essential for businesses to stay up to date with the latest equipment and software. However, acquiring new technology can be expensive and may strain a company's cash flow. That's where asset finance comes in as a great option for businesses to acquire the technology they need without incurring significant upfront costs.
Asset finance is a flexible financing option that allows businesses to spread the cost of their tech investments over time. By financing their technology assets,companies can preserve their working capital and use their funds for other business activities, such as expansion or hiring. In addition, asset finance also provides tax benefits and the potential to generate revenue from the use of the technology, which can help offset the cost of financing.
In this blog,we'll explore the top 5 reasons why businesses should be financing their techwith asset finance this year. We'll discuss the benefits of asset finance, what types of technology assets can be financed, and what to look for in an asset finance broker. So whether you're a start-up or a well-established business, join us as we dive into the world of asset finance and explore how it can help your business thrive in the ever-evolving world of technology.
By using asset finance, businesses can avoid large upfront payments for expensive technology investments, which helps them preserve their working capital. This is especially important for start-ups or small businesses that may not have large cash reserves. By spreading the cost of technology investments over a fixed period, businesses can manage their cash flow more effectively and have the financial flexibility to invest in other areas of the business, such as marketing, sales, or hiring new staff. This, in turn, can help to accelerate business growth.
Technology is a critical component of modern business operations, and companies must stay up to date with the latest equipment and software to remain competitive. By using asset finance to acquire the latest technology, businesses can improve their productivity, efficiency, and overall performance, which can help drive business growth. With the ability to upgrade technology regularly, businesses can keep up with the latest trends and stay ahead of the competition.
Asset finance can offer tax advantages to businesses. Depending on the financing structure and tax laws, the lease or loan payments can be deductible as a business expense, reducing the company's taxable income. This can help businesses save money on taxes and have more cash available for growth-oriented investments.
By using asset finance, businesses can acquire the technology they need without having to make large upfront payments. This allows companies to increase their purchasing power and invest in technology that they may not have been able to afford otherwise. This increased purchasing power can help businesses to take advantage of growth opportunities, such as expanding into new markets, launching new products, or increasing marketing efforts.
Asset finance brokers like Bluestone (link to finance for tech page) can offer customised financing solutions that are tailored to a business's specific needs. This may include seasonal payments and various repayment structures that align with the company's cash flow and financial goals. By working with an experienced asset finance broker, businesses can find the right financing solution that meets their unique requirements, which can help to accelerate business growth.
Asset finance provides businesses with a range of benefits that can help to drive growth. By effectively managing cash flow, upgrading technology regularly, taking advantage of tax benefits, increasing purchasing power, and working with a trusted asset finance broker, businesses can improve their bottom line and achieve long-term success.
Investing in hardware technology such as desktop computers, laptops, and servers can improve a business's operational efficiency, enable employees to work more effectively, and increase productivity. Up-to-date hardware can also provide a competitive advantage and support growth by enabling new applications and systems to be utilised.
Hardware products worth exploring for your business:
Utilising software like productivity tools, accounting software, CRM systems, and project management software can help streamline business processes, increase collaboration and communication, and improve decision-making. By leveraging software, businesses can reduce costs, increase revenue, and support growth.
Software products worth exploring for your business:
Telecommunications equipment, for example, business phones, mobile devices, and video conferencing systems can enable remote work, facilitate collaboration across teams and locations, and improve customer service. With high-quality telecommunications equipment, businesses can also increase efficiency and productivity, reduce costs associated with travel, and support growth by reaching new customers and expanding to new markets.
Telecoms equipment worth exploring for your business:
Investing in manufacturing equipment such as CNC machines, 3D printers, and industrial robots can enable businesses to produce higher-quality products at a faster rate, improve product customization, and reduce labor costs. With the right manufacturing equipment, businesses can also support growth by expanding their product offerings and increasing production capacity.
Manufacturing equipment worth exploring for your business:
Transportation like delivery trucks, trailers, and forklifts can help businesses streamline their supply chain, improve efficiency, and reduce costs associated with transportation. With the right transportation equipment, businesses can also support growth by expanding their delivery capabilities, reaching new markets, and improving customer service.
Transport worth exploring for your business:
Experience and reputation:
It is essential to choose a broker with a good reputation in the industry and a proven track record of providing quality services. Look for a broker with a significant amount of experience in the industry who has successfully helped other businesses secure financing for their technology assets. Check for online reviews, testimonials, or references from past clients to see if the broker has a reputation for providing quality services.
Range of services:
Choose a broker that offers a variety of financing options, including hire purchase, leasing, and refinancing. A good broker should be able to provide tailored financing solutions that meet your specific business needs. Make sure the broker has experience with financing the types of assets that you are interested in acquiring and can provide options that match your business's cash flow and credit profile.
Speed and responsiveness:
Time is of the essence when acquiring technology assets, so it is important to choose a broker that can provide fast and efficient service. The broker should have a streamlined process for approving and funding financing, and they should be responsive to your inquiries and concerns throughout the process. Make sure the broker provides clear timelines for each step of the financing process.
Industry expertise:
Choose a broker that has experience and expertise in your industry. The broker should have a good understanding of the unique needs of your business and should be able to provide tailored financing solutions that meet your specific needs. For example, if you operate in the healthcare industry, the broker should have experience financing medical equipment.
Professional accreditation:
Look for a broker that is a member of a professional trade body or has other relevant accreditations. This provides reassurance that the broker is reputable and operates to high professional standards. Some examples of relevant trade bodies in the UK include the Finance and Leasing Association (FLA) and the National Association of Commercial Finance Brokers (NACFB).
Financing technology through asset finance can provide many benefits to businesses, including preserving cash flow, keeping up with the latest technology, and improving the company's financial standing. Working with a reliable and experienced asset finance broker like Bluestone can make the process even easier and more streamlined, ensuring that businesses have access to the funding they need to acquire the technology necessary to drive their success.
By working with Bluestone, businesses can benefit from expert advice, flexible financing options, and a commitment to delivering exceptional service. So if you're looking to acquire technology for your business, contact us today.
Last Updated: February 2023. Version: BS.202307.01BL18
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