Finance your professional equipment

As a business owner, it will be necessary to purchase professional equipment, whether it be machines or even computers. The financing of this operation can differ according to the experience and the stability of your company. Wealth A7 presents you the different possible modes of financing:

Equity

Using company funds to finance your equipment is a possibility, there are advantages and disadvantages. The advantage is that your company will be independent, you will not be linked to any other structure by a credit or a debt. The disadvantage is that if your company is young, the financing of this equipment will have a strong impact on your cash flow, in this case it may not be the best solution for your company.

Professional leasing

The professional rental allows you to rent the equipment in question, quite simply. In this case, the company will conclude an agreement with a specialized organization and will pay it rent. These rents will of course be deductible from the result. At the end of the rental period, which has been determined in advance, the equipment is returned unless an extension of the rental period has been agreed. The disadvantage of this method is that the goods do not appear on the company's balance sheet.

Leasing

Leasing is very similar to financial leasing with some differences. In this case, the company pays rent to the organization, but at the end it can buy the goods at a price that has been predefined in the leasing agreement. The rents are obviously deductible from the company's income, but the leasing still does not appear on the company's balance sheet.

Why choose leasing rather than financial leasing? It can be interesting to choose leasing if the equipment in question wears out quickly and must be replaced often. On the other hand, if the equipment is used over the long term, the lease buy-back option may be more interesting. 

The professional loan

The professional loan is obviously the most classic solution to finance your equipment purchase. This loan will be concluded with a banking institution and the conditions will be negotiated (= rate, insurance etc...). This allows you to avoid a strong impact on your cash flow in one go and of course to deduct the interest from your taxable income. However, it is obvious that a loan binds you to a banking institution and that the latter will most certainly ask for the pledge of the good in question or a personal guarantee in order to ensure its investment.

The purchase of professional equipment is an important step in the development of your business, our credit professionals can assist you in financing this investment, contact us !