As your business grows, your equipment needs are going to grow with you. At the same time, technology is constantly evolving, quickly rendering older computers, machines or software programs obsolete. Many businesses, therefore, need to be constantly updating or upgrading their equipment assets to stay ahead of the competition.
These upgrades can pose significant financial hurdles. Whether your business needs a new computer program, a state of the art piece of kitchen equipment or a more robust network server, those investments are going to be expensive. Luckily, you don’t have to navigate those costly purchases alone. At Peter Dunn Finance, we provide businesses with assistance in equipment finance in the Perth area. If you need to procure a new piece of machinery or software, we can help you decide on the smartest strategy for doing so, given your current financial standing.
Purchasing New Equipment: Should You Buy Outright?
Sometimes, businesses need new equipment but have limited cash on hand to pay for it. In such situations, pursuing equipment finance options in Armadale or Fremantle—such as leases or equipment loans—is the only real option. If your business has been operating for several years, and is doing well there is a chance that you have more than enough cash on hand to handle the purchase of a new piece of equipment. The question is, should you?
There are advantages to purchasing a new piece of equipment outright. By doing so, you avoid the hassle of making regular payments. You also will likely pay less in the long run, because you won’t have to pay interest on an equipment loan. Depending on the amount of money required for the purchase, an outright, open-and-shut transaction might be the optimal choice.
Of course, there is also one big disadvantage to buying your equipment outright. Quite simply, an outright purchase will wipe out a significant amount of your business’s working capital. You may need that money to remain liquid to buy inventory, pay your employees or cover other expenses. Unless you have an extensive amount of cash on hand—enough to acquire the equipment you need, without putting a dent in your company bank account—you might want to consider other options for equipment finance in Fremantle or South Perth.
Get the Advice You Need Regarding Equipment Finance in South Perth, Armadale or Fremantle
At Peter Dunn Finance, we are happy to speak with you about your equipment purchase plans and whether they are the best option for your business. In some cases, the pros of an outright purchase will outweigh the cons. In other cases, you will want to preserve your liquid cash assets and pursue alternative financing options. Either way, you can trust that we will review your situation from every angle and provide the kind of tailored advice you deserve.
Do you need to talk to someone about equipment finance in South Perth, Armadale, Fremantle or anywhere in the Perth metropolitan area? Call 0427 947 480 to schedule a consultation.