Expanding a business often involves examining existing operations and processes on several levels. From floor space, head count and employee upskilling, to research and innovation – all are all important elements but one key concern for many companies is securing the right equipment needed to facilitate expansion. Acquiring such assets often requires the services of an equipment finance company, which can provide you with the appropriate funding or pathway to purchase the critical assets needed in order for a business to sustainably grow.
An important consideration here is making sure that you finance business equipment with a provider that will work in the business’ best interests. So how do you know which equipment finance provider is right for your operations?
There are two main areas to consider. First, does an equipment finance company understand how your business operates and your cash flow? Establishing a financing agreement is something that can require several years’ commitment, and therefore signing one should only be done after careful consideration with the finance provider taking into account your cash flow and whether your business can meet the necessary frequency of the payments.
The right equipment finance company should clearly lay out a payment plan that is in line with and will support your business’ growth trajectory, rather than a ‘one size fits all’ solution.
Second, do they understand your business from an industry perspective? There are some companies who specialise in leasing business equipment only for specific sectors, and therefore may not be able to offer a leasing solution for the exact equipment that you need. It is crucial that you choose a finance provider who not only understands the assets and equipment specific to your industry and operation, but also has extensive experience to help you to get the most out of your assets with best practice lifecycle management solution. Have they worked with companies in your industry before? A sound track record working with companies in your industry is a positive indicator.
The next crucial part of selecting a finance provider is to determine whether you can get the equipment or assets you desire as part of any agreement. For example, under a standard operating lease agreement, the finance provider should work with your supplier of choice to obtain the equipment, which the provider should pay for and then ensure you receive your equipment. From that point, you will begin paying the regular repayments over the term of the agreement.
In addition, the finance provider should also be able to offer you operational flexibility with your desired equipment, including the ability to change or expand your asset base as the need arises in the future.
Furthermore, the right equipment finance company will provide the best finance solutions that work for you – not the other way around. Make sure you aren’t over-committing your business capital, and be confident that the finance provider is working in your favour. This way, you can continue on your growth trajectory comfortably and with confidence that your cash flow will not be negatively impacted.
The equipment finance solutions available from Alleasing function for a wide range of industries and allow for operational flexibility and smooth repayments – get in touch to find out more.
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