With interest rates so cheap these days, most small medium sized businesses are choosing to finance their business assets rather than paying cash. These assets include , trucks, plant and machinery.These assets are increasingly being turned over every 4 5 years as technology improves, general wear and tear increases from demanding work loads and the taxation life of assets shortens.
So why not just pay cash!! Its been a great year in business, we have plenty of cash and we may as well just pay for the asset outright.
Well this might be true, but what happens next year if sales slow and funds are not there to cover business overheads and expenses. This is where financing becomes a valuable part of any business and following are many of the benefits associated with doing so.
1. Lock in a fixed interest rate for up to 5 years depending on the asset being financed. These rates vary but at present are approximately 7.5% fixed depending on what asset is being financed and term of loan
2. Use a particular finance product such as , Hire Purchase, or Finance Lease. With a Chattel Mortgage customer owns the asset from the day one, can claim GST up front and...
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