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Know your equipment like the back of your hand
As a business, your machinery is the second biggest puzzle to what makes the core of your business. Knowing this segment of your business like the back of your hand is important. Keep a checklist of equipment checkups that need to be done weekly if not monthly.
List equipment that needs replacing or maintenance to ensure that your business is always running. Don’t ignore the little ticks and glitches that machinery shows you, it’s a warning sign that something is about to go bust.
If you are leasing, then it is vital that you ensure that you and your employees follow the manufacturers manual to the ‘T’. Having an easy to read simplified version next to the equipment will be a sure way to make sure that it is followed.
It’s called keep up, not catch up
When it comes to any business, keeping up with what happens in the market and what your consumers are what will determine whether you sink or swim. Bigger businesses might have a better footing when it comes to allocating funds towards buying equipment that keeps up with the times.
Small businesses are in a catch-22 situation whereby you might need new equipment to make money, but there is no money to get a hold of the equipment. According to the Australian Bureau of statistics, more than 60% of small business stop operating within the first three years.
You can review other options that are available to you by speaking to a financial advisor. If you are working on a strict budget you can lease the equipment with a loan that understands your business’s needs or take out a smaller business loan of $10,000.
Bundle up
Any business would love to have cost effective ways of operation, and bundling up your equipment is one of them. When it comes to replacing equipment, you can bundle it up into one lease, instead of paying for it individually which can cost you more. Not only will it be easier to manage under one payment, but it will also help you bag a good discount if you negotiate with your vendors who are leasing the equipment to you.
Always ask questions
If you want to walk away with the best deal that will benefit you it’s important that you always ask questions which will leave you feeling satisfied than full of regrets. After all, it’s your money that is on the line. Ask questions such as:
- Anything pertaining to the terms and conditions of your loan or lease
- Are there any upfront payments?
- What are the return rights?
- What is the termination process?
Update your finances
You will have to find an equipment financing option that suits your businesses finances. It has to be something that is flexible as businesses are in a constant flux, and the financing option will have to be able to keep up with that. Basically, it needs to understand your tax or cash flow needs. It’s advisable to speak to a financial advisor who will give you a better insight as to what solution will work for your business to ensure that your business is a success this year.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Approval for commercial loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.
The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.
