Buying new equipment can help a business grow, improve productivity and provide a better service to customers. But paying the full purchase price upfront isn't always the best use of valuable business cash.

Equipment finance allows businesses to acquire the equipment they need while spreading the cost over an agreed term.

Here are 10 reasons New Zealand businesses choose to finance equipment.

1. Preserve Your Cash

Instead of using a large amount of cash to purchase equipment outright, finance allows you to retain funds for other important areas of your business.

2. Spread the Cost

Rather than one large upfront payment, the cost of equipment can be spread across regular repayments over an agreed term.

This can make budgeting and cash-flow management considerably easier.

3. Get the Equipment You Need Now

Waiting until you've saved enough cash to purchase equipment can potentially delay growth.

Finance can allow you to acquire the equipment sooner and start putting it to work in your business.

4. Match the Cost with the Benefit

Business equipment is normally used over several years.

Financing can allow the cost to be spread over the period in which the equipment is being used and helping your business generate income.

5. Keep Working Capital Available

Working capital is essential for everyday expenses such as wages, stock, marketing, maintenance and unexpected costs.

Financing equipment can help keep more of that working capital available.

6. Make Budgeting Easier

Regular repayments make it easier to understand what your equipment will cost each month or week and plan accordingly.

7. Finance a Wide Range of Equipment

Equipment finance isn't limited to large machinery.

Depending on the circumstances, finance may be available for medical equipment, vehicles, IT systems, gym equipment, commercial kitchen equipment, manufacturing machinery, construction equipment, agricultural equipment, office technology and many other business assets.

8. Purchase from More Than One Supplier

A project doesn't always involve just one supplier.

Depending on the finance arrangement, equipment from multiple suppliers may be able to be included within the same overall finance solution.

9. Support Business Growth

The right equipment can increase capacity, improve efficiency, reduce downtime or allow a business to offer new products and services.

Finance can help make that investment possible without requiring the entire purchase price upfront.

10. Choose a Solution That Suits Your Business

Every business is different.

The appropriate finance structure will depend on factors such as the equipment being purchased, the amount required, cash flow, preferred repayment frequency and how long the business expects to use the equipment.

One More Thing – Investment Boost

Eligible New Zealand businesses may also be able to benefit from the Government's Investment Boost when purchasing qualifying new assets.

Under the current rules, businesses can claim 20% of the cost of an eligible new asset as an immediate deduction, then claim depreciation on the remaining 80%. Eligibility conditions apply, so businesses should check the rules and obtain their own tax advice.

How eLeasing Can Help

For more than 20 years, eLeasing has helped New Zealand businesses and organisations finance equipment, vehicles and business assets across a wide range of industries.

Whether you're purchasing one item or equipment from multiple suppliers, we can help you explore the available finance and leasing options and make the process simple and straightforward.

Ready to Finance Your Next Equipment Purchase?

Use our free online calculators to estimate repayments or contact eLeasing for an obligation-free discussion about your equipment finance requirements.