Asset finance is a type of loan that businesses can use to purchase or upgrade vehicles, equipment, or machinery necessary to operate their business. Instead of paying one large sum upfront, businesses can spread the cost over time with smaller, regular payments. This can help manage cash flow and free up capital for other investments.
One of the key advantages of asset finance is that it can offer tax benefits to businesses. Under the Australian Taxation Office’s (ATO) rules, businesses can claim deductions on the interest paid on asset finance loans, as well as on the depreciation of the asset itself. This can help reduce the overall tax liability for the business and improve its cash flow position.
Asset finance can also offer businesses the flexibility they need to keep up with changing market conditions. By upgrading or replacing outdated equipment, businesses can stay competitive and meet the demands of their customers, while also improving their efficiency and productivity.
If you’re considering asset finance for your business, it’s important to work with a professional broker who can offer competitive rates and flexible terms. Look for a broker who understands your industry and can provide tailored solutions to meet your specific needs. If you are considering an asset finance application before the EOFY, it is important to contact your broker as soon as possible.
Overall, considering asset finance before the EOFY can be a good strategy for businesses looking to improve their financial position. By taking advantage of the tax benefits and increased cash flow, businesses can position themselves for growth and success in the year ahead.
Also, view our article about the instant asset write-off deadline on 30 June.
If you’re interested in learning more about how asset finance can benefit your business this EOFY, contact Shakespeare Leasing & Mortgage Solutions today.
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