Secure Funding and Capitilise on the Recovery
There is much evidence that the economy is now moving out of recession. Companies who have pared back costs and protected cash flow are rightly looking to the future. Now is the time they could build market share, capitalise on their competitors who may not have been as fortunate.
Speed is of the essence as credit lines begin to relax and interest rates remain low; but how to secure funding to invest in the future?
One option is to hire capital equipment as opposed to purchase. There is no capital outlay but more importantly no balance sheet effect. Unlike capital expenditure, financed by borrowing, there is zero effect on balance sheet ratios such as debt to equity. This means no impact on other credit lines, such as loans and overdrafts making further borrowing easier.
Furthermore fixed monthly payments, including all important service costs, are protected from rising interest rates. You will always know the exact amount of future payments, making budgeting and cash flow projections simple.
Such payments can be deducted as pre-tax business expenses reducing a Companies tax liability.
Software tools are available to assist in the comparison between capital purchase and hire. Such tools take into account service, utilisation and depreciation. Access check out here and weigh it up for yourself.
The Clean Sweep UK team can be contacted on local rate 0844 704 4996
Speed is of the essence as credit lines begin to relax and interest rates remain low; but how to secure funding to invest in the future?
One option is to hire capital equipment as opposed to purchase. There is no capital outlay but more importantly no balance sheet effect. Unlike capital expenditure, financed by borrowing, there is zero effect on balance sheet ratios such as debt to equity. This means no impact on other credit lines, such as loans and overdrafts making further borrowing easier.
Furthermore fixed monthly payments, including all important service costs, are protected from rising interest rates. You will always know the exact amount of future payments, making budgeting and cash flow projections simple.
Such payments can be deducted as pre-tax business expenses reducing a Companies tax liability.
Software tools are available to assist in the comparison between capital purchase and hire. Such tools take into account service, utilisation and depreciation. Access check out here and weigh it up for yourself.
The Clean Sweep UK team can be contacted on local rate 0844 704 4996
