Business cash flow is a straightforward concept: money in compared to money out. However, with invoices owing, bills to be paid and expenses to be covered, cash flow often ends up being a major pain point for many organisations.
Even if you have plenty of customers, a lack of consistent cash flow can result in a great deal of stress and a feeling that you are striving instead of thriving.
To stay on top of your business cash flow, acquiring business critical assets using asset finance can help.
Here are some of the top reasons why asset finance makes sense:
Fewer upfront costs
Securing asset finance means you are not committing lump sums of cash to new equipment, vehicles or machinery.
Instead of emptying your business accounts to make a purchase, you can break up your payments and keep more money in the bank each month.
No big deposits
With asset finance, collateral for your loan comes from the asset being funded. This means you don’t have to tap into your cash reserves to come up with a deposit.
The lease payments on asset finance may be deductible from your profits. This can be another way to keep more of the money your business earns.
Better financial control
One of the keys to staying on top of business cash flow is to have a clear idea of how much money will be coming in and out of your business each month.
Securing asset finance and having regular repayments will allow you to do forecasting and budgeting with more confidence. You’ll be able to spread the cost of your equipment over time, rather than being stung with a lump sum payment.
Enquire about asset finance today
Asset finance can be a simple solution to help your business control cash flow and stay in the black. If you have been in business for two years and have a clean credit history.