5 business-boosting benefits of accessing finance

 A technician sitting in a car using a diagnostics tool.

Are you putting off investing in the tools you need to run your business more efficiently because of the up-front expense?

Many business owners encounter this dilemma, yet there’s a simple way to get access to the tools you need to supercharge your business - an equipment or business vehicle loan.

With these loans, you may be able to borrow up to 100% of the value of the asset you want to purchase (subject to credit terms) and repay the amount over a fixed term at a fixed interest rate.

Here are five reasons a loan like this can be a great option for businesses like yours.

1. Get the equipment you need now

Making do with outdated tools can be a huge drain on a technician’s time, making your business inefficient, less productive and less profitable than it could be.

Chances are, you know the tool you need; you’re just not able to invest in it right now.

With an equipment loan, the tools you need could be in your workshop and being used by your technicians in just a few days’ time—with an immediate impact on efficiency and productivity.

An equipment loan also means you may not have to scrimp and buy the cheapest version of a tool available. Instead, you could invest in the tool you really need, with all the benefits that brings.

2. Manage your cash flow and conserve your working capital

Paying up-front for tools, equipment or a work vehicle is often a major outlay, which can have a huge impact on your business’ cash flow. By using an equipment and business vehicle loan to make the purchase instead, you spread the cost of the initial purchase out over a longer period of time. There’s no up-front hit to your bank account and you know how much you’ll be paying back each month.

Similarly, an equipment or business vehicle loan preserves the working capital you have in the bank, ensuring your purchase doesn’t impact your liquidity. It’s all about risk mitigation. This means that if an unexpected expense crops up, your working capital won’t have been affected by the purchase.

That can be great piece of mind, especially for small- to medium sized business owners who may have relatively low “rainy day” cash reserves in the bank and therefore may be more susceptible to these kinds of events.

3. Use the equipment while you pay for it

One of the major benefits associated with accessing finance to acquire a business vehicle or piece of kit is that you’re able to use it while you pay it off.

This is especially valuable if the equipment/business vehicle you’ve financed is used to boost productivity and/or turnover. This means that you may be able to pay it off quicker and potentially start seeing a profit on your investment sooner (compared with waiting to save up and purchase the equipment outright).

4. Enjoy the tax benefits

There can also be some great tax benefits to using finance. You may be able to claim depreciation and interest paid, and other deductions on the actual repayments. Talk to your accountant to ensure you understand the depreciation and tax implications of any particular piece of equipment or business motor vehicle you’re considering purchasing.

5. Get loan approval quickly

Applying for a loan sounds like a lot of paperwork but, in truth, an equipment or business vehicle loan can be easy to apply for and approvals can come very quickly. Take, for example, CAP ezi-finance, which offers loans to Members for amounts over $2,500 with repayment options over 12 to 60 months. Our pre-existing relationship means we already know you and your business, so CAP ezi-finance can provide:

  • Fast and hassle-free service

  • $0 set-up and application fees

  • Competitive interest rates

  • Guidance and support throughout the process

  • A lender you know and can trust. You also earn Rewards Points on your purchases!*

Want to learn more about how CAP ezi-finance can help you take advantage of the benefits outlined above? Talk to your Area Manager or visit cap.coop/finance to learn more and get an indicative quote online today.

Capricorn Finance offers business finance through Capricorn Society Financial Services Pty Ltd (ACN 129 134 667/NZBN 9429050429110). Fees & charges, terms and conditions and lending criteria apply.

*Purchases eligible to earn Capricorn Rewards Points and the rate of Capricorn Rewards Points earned per dollar spent may vary. Participation in the Capricorn Rewards Program is subject to the Capricorn Rewards Terms and Conditions.

This article was published 09/11/2023 and the content is current as at the date of publication.