Most construction businesses will know the importance of having reliable equipment and machinery. Whilst for most businesses, hiring plant and machinery equipment is the most practical and cost-efficient method, however, for those that are looking to invest in a longer-term solution, asset finance is a great way of investing in machinery without a large upfront investment. Financing your construction machinery can provide many benefits that you may not have thought of. Here are five reasons why you should consider asset finance for your plant and machinery needs:
1. Conserves Cash Flow
One of the most significant benefits of asset finance is that it conserves your cash flow. Especially in today’s economy, cash flow is crucial for any business. You don’t have to pay for the equipment upfront, instead, you pay for your machinery and equipment over an extended period of time. This allows you to use your cash for other business needs.
2. Better Equipment
Financing can help you acquire better equipment than you could afford to buy outright. Since you don’t have to pay the full cost upfront, you can still get the equipment you need to grow your business without compromising on quality.
3. Protect against inflation
Financing your construction machinery helps protect your business against inflation. Paying for your construction equipment outright involves getting rid of your free cash within the business, which can be high risk.
Whilst it may be tricky to notice inflation on smaller purchases, it can seriously impact your financial growth when it comes to heavy construction equipment, which tends to come at a much higher price and has a much bigger impact on your bank account.
4. Flexibility
Financing offers flexible terms that can be tailored to your business’s needs. You can choose the length of the loan and the repayment schedule that works best for you, it’s that simple.
5. Preserves Credit Lines
Financing your construction machinery doesn’t affect your credit lines, meaning you can keep your credit lines intact and available for other business needs.
At Rockthorn, we have multiple finance options and can help you find the right loan for your business so that old equipment doesn’t slow you down. Contact us today and speak with an experienced expert that can help advise on the best financing options for you.