Many businesses don’t have enough money to consider an outright purchase, making asset finance a necessity.
Asset finance makes sense for many businesses. Even if you have enough capital, investing your cash in assets leaves you with less working capital to finance operations, or explore new growth opportunities.
The flexibility of asset finance options can allow you to grow your business faster, generate more profit, or simply make better purchasing decisions.
Start by listing the assets you need, so that your business can::
It’s important to make a case for each asset purchase. Investors and lenders may want to see the evidence, but it also helps you make the right decisions.
If you require your staff to make a proper case when they want new equipment, it can quickly sort out a genuinely productive investment from a vanity item.
For example, most employees would like the latest smartphone or a new company vehicle, but would this purchase really add to the business’s bottom line?
Sometimes leasing an asset can make more sense than owning it. For example:
Speak to your accountant or financial advisor about any tax implications before deciding to buy or lease.
Do the assets you need really have to be brand new or would second-hand suit the purpose? Start-ups especially need to save every dollar to market and grow their business.
Most businesses can save considerably on everything from office furniture to production equipment by:
Taking out a bank loan can be an effective way to finance business equipment purchases that you need, especially if it’s important to you to own the asset from the outset.
The advantage of a loan is that it:
Loans should be structured to match the expected life of the asset – long-term loans for long-lasting assets such as a building, and short-term loans for assets with a shorter useful life.
Comerica offers a range of financing solutions, including a business line of credit and term loans.
We’ve worked hard to establish ourselves as an SBA preferred lender. Whether you’re looking to expand your business, or purchase equipment or real estate, a Comerica Small Business Administration (SBA) Loan can assist with financing to help your company grow.
We’ll work with you to evaluate your needs and find an SBA Loan for your situation.
Nearly 90% of all businesses are eligible for an SBA loan program. The general qualification standards for SBA lending are less stringent than many other types of loans, but the same issues are considered such as:
Chatting to your accountant, financial advisor and your bank will help to ensure you get the right asset finance package tailored to your budgets and your business needs.
You can assist your case for asset finance if you come prepared with:
Be prepared also to demonstrate:
Asset-based lending is a solution that more and more small businesses are choosing to use because it allows them to focus on what matters the most – growing their business. If you have a good asset inventory and are planning a clear strategic path for growth, you can use those assets to achieve it.
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