How Can I Finance New Equipment for My Business?

Financing new equipment for your business is essential for growth, but it doesn’t have to strain your budget. There are various finance solutions available to help you acquire the equipment you need without the hefty upfront costs, these include: asset finance, business loans, and invoice financing, among others. 

In this article, we will talk you through the options available for businesses in the UK and how FUNDUR can assist you with tailored financial advice and support to secure the best financing solution for your specific needs.

Purchasing equipment outright may not always be feasible for growing businesses, especially when dealing with large machinery or cutting-edge technology. By choosing to finance, you can spread the cost over time, freeing up cash flow to focus on other critical areas of your business. Whether you’re looking to lease, hire, or get a business loan, financing options can make acquiring new equipment more manageable.

Asset finance allows businesses to obtain equipment while spreading payments over a fixed period. This is a popular choice for businesses looking to avoid large upfront expenses.

FUNDUR can help you access competitive asset finance solutions, making it easier to purchase or lease the equipment you need.

The two main types of asset finance are:

• Hire Purchase: This option allows you to pay for equipment in instalments over an agreed period. At the end of the contract, you own the asset outright.
• Equipment Leasing: Leasing offers a way to use the equipment without the responsibility of ownership. You pay a monthly fee for the use of the equipment, and at the end of the lease term, you can choose to return the item, upgrade, or purchase it outright.

For businesses looking for flexibility, a business loan might be the right choice. Loans can be used to cover the cost of new equipment, with repayments spread over time. 

FUNDUR works with a wide network of lenders to help businesses secure loans at competitive rates. A business loan can offer the advantage of immediate ownership, though it requires careful consideration of your repayment plan.

A merchant cash advance allows businesses, especially those with strong card sales, to borrow money against future sales. This form of financing is quick and easy to access, making it ideal for businesses that need new equipment fast but don’t want to deal with lengthy loan approval processes. Repayments are taken as a percentage of future sales, making it a flexible option for businesses with fluctuating revenue.

If your business is waiting on invoices to be paid and you need equipment now, invoice financing may be a solution. With invoice financing, you can access the cash tied up in unpaid invoices to purchase equipment. 

FUNDUR can help you explore invoice financing options, allowing you to unlock cash quickly without waiting for clients to settle their accounts. Get in touch with FUNDUR today through our online contact form or call us on 01908 732020 .

Certain types of equipment may qualify for industry-specific financing options. For example, businesses in sectors such as construction, healthcare, and manufacturing may be eligible for specialised financing packages that cater to their unique needs. 

FUNDUR can help you navigate these options and secure the best deal for your industry. Want to know more? Get in touch with today. Complete our online contact form or call us on 01908 732020, a member of our team will be happy to help.

Selecting the right finance option for your business depends on various factors, including:

• Cash flow: Assess your current and projected cash flow to determine what you can comfortably afford to pay each month.
• Equipment lifespan: Consider how long you need the equipment and whether owning it outright is necessary. Leasing might be preferable if you only need the equipment for a short period or want to upgrade frequently.
• Financial stability: Take stock of your business’s financial health. A loan or hire purchase agreement can be beneficial for businesses with strong financials, while leasing or a merchant cash advance might suit those with fluctuating revenue streams.

FUNDUR can assist you by providing personalised advice on the best financing options for your business. We work closely with lenders to offer competitive and flexible solutions that meet your specific needs.

Fill out our online contact form or give us a call on 01908 732020 to find out more.

Financing new equipment brings a range of benefits, including:

• Preserving cash flow: By spreading payments over time, you can keep your working capital intact for day-to-day operations.
• Tax advantages: In some cases, leasing equipment can offer tax benefits, as lease payments may be deductible as a business expense.
• Flexibility: Financing allows you to stay flexible, either by leasing equipment that can be upgraded or by opting for repayment plans that suit your business’s income patterns.
• Access to better equipment: Financing opens the door to top-of-the-line equipment that might be unaffordable if purchased outright.

Yes, used equipment can often be financed, sometimes with more favourable terms than new equipment.

FUNDUR can help you explore this option and find the right lender to suit your needs.

Absolutely. Equipment financing is a great option for start-ups that need critical tools but lack the capital for upfront purchases.

FUNDUR works with lenders who specialise in start-up financing, making it easier for new businesses to get the equipment they need.

The time frame for securing equipment financing can vary, but with the help of FUNDUR, businesses can often receive funding within days, depending on the lender and the complexity of the financing request.

Leasing offers flexibility, so many businesses choose this option because it allows them to upgrade equipment at the end of the lease term. FUNDUR can help you structure lease agreements that give you the flexibility to upgrade when needed.

Yes, maintaining timely payments on equipment finance agreements can positively impact your business credit score, making it easier to access future financing.

At FUNDUR, we specialise in helping businesses secure the right finance solutions to acquire new equipment. Whether you’re looking for asset finance, a business loan, or advice on managing cash flow, our team can offer personalised solutions to help you. With access to a wide network of lenders, we ensure you get the best possible terms, allowing you to grow your business without compromising your financial stability.

If you need advice on how to finance new equipment for your business, get in touch with FUNDUR today through our online contact form or call us on   01908 732020 .