Most firms that use our services at DJB know that using an asset finance broker is a great way to improve cash flow and obtain finance quickly.
They understand that borrowing against business assets allows them to borrow money in a flexible and short-term way, making it is a very accessible form of finance.
However, there are also benefits to leasing new assets rather than buying them. If you are not already using this form of asset finance, it is well worth considering doing so in the future. Here is a brief explanation of why:
The ability to buy and use the best equipment
Asset finance allows companies to afford the latest and best equipment, which means that they can stay ahead of the competition by being more efficient, while offering better products and services.
Tax benefits
You can declare asset finance repayments as a business expense. This means that it can be written off against your profits, thus shrinking your tax bill when you claim capital allowance tax.
An immediate boost to your cash flow
You only pay VAT on the cost of equipment rentals rather than on the purchase price, which means that more cash stays in your business. In addition, for some assets you can reclaim the VAT, giving your cash flow a further boost. Please seek independent advice from a qualified accountant in relation to any VAT and Tax queries.
At DJB, we help all kinds of businesses to use asset finance to get the plant and other equipment that they need to succeed. Give us a call today to discuss the different ways that you can use our expertise to help your business to grow.
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