Equipment Finance Information

Whether it’s a new photocopier, desktop, or a large piece of complex machinery, commercial equipment usually requires a large capital outlay. This can be difficult for any business to manage effectively, but is particularly problematic for any business without a large cash reserve or a generous investor.

For businesses that struggle to manage the equipment costs, securing an equipment finance package can provide the flexibility needed to continue trading profitably without worrying about the need to replace or upgrade. Although equipment can be purchased with the acquisition of a commercial loan, this often requires a large deposit, and offers little flexibility if you need to upgrade in the future. Equipment finance is specifically tailored to the needs of a growing business, or any organisation without the capital resources to purchase equipment outright and still remain profitable. It allows a company to acquire and operate equipment without ever actually owning it, and also takes into account the need to upgrade in the case of specialist machinery. At First National Money, we have existing ties to a number of specialist lenders, and can quickly arrange a deal that is just right for the needs of your business.

Unlike a conventional loan, an equipment finance package from First National Money is put together on a bespoke basis, with a deal tailor-made to suit you. This means that your company can secure all the equipment and machinery it requires to compete on a level playing field, without compromising the business plan or financial structure of the company. There are two main types of equipment finance, which cover the vast majority of circumstances – direct lease, or sale and leaseback.

In a direct lease arrangement, the business will source the equipment needed and then get a quote from the supplier. The equipment finance provider then purchases the equipment, and leases it back to the business at a fixed monthly rate. A sale and leaseback arrangement involves securing finance against equipment that has already been purchased by the business, which is then retained and operated by the business for a monthly fee.

If you think either type of equipment finance would help your business operate more effectively without the constraints of equipment ownership, contact First National Money today for further information.