How To Improve Your Cashflow
Running a business is complicated enough that, often, you lose sight of the very thing you went into business to do. Many small and medium enterprises suffer from administrative difficulties that lead to stress and anxiety and that feeling of there being simply too much to handle.
One area that causes a huge amount of concern for SMEs is proper business budgeting.
Using leasing to improve your financial control
The business model of buying all your assets outright is one that is firmly stuck in the past. The spending of large amounts of capital which ties up valuable cash resources to provide the basic equipment needed to run your company, can be inefficient and limiting.
Spreading the costs of a business’ physical assets allows you to properly meet your expenditure with your real income. It does away with the need for large amounts of investment – a regular budgeted monthly outgoing is far easier to deal with than any sudden need for capital. Simply, business budgeting becomes a breeze.
More than simply spreading payments, however, asset finance allows for investment in newer items that might otherwise simply be inaccessible. When a new member of staff begins working for you, rather than palm them off with the wobbly desk and five-year old PC, give them a bright start with state-of-the-art equipment and a comfortable working environment that makes them feel motivated.
What can you get through asset finance and leasing?
At Maxxia, we specialise in all forms of physical asset leasing:
- IT leasing – from laptop and desktop leasing, through to specialised scientific equipment, we can help you keep your workplace up to date with the latest IT equipment at low monthly payments.
- Car leasing – whether it is a single executive car for yourself, or a fleet of company cars to satisfy employee needs, we can find the right vehicle for you.
- Van leasing – when the company van is integral to the running of your business, making sure you have a new vehicle that is under warranty and won’t let you down is key. Ask us about the range of van lease options.
- Equipment hire – specialist equipment can come at a premium and might be beyond the reach of your capital. Spreading the cost of equipment offers an affordable way to obtain specialised machinery to keep your business at the top of its game.
- Office furniture leasing – leasing isn’t limited to technology. The cost of desks and other furnishings for a new office can be considerable. Allow us to help give your environment a professional look.
The top five benefits of leasing and asset finance for your business budgeting
1 – Less strain on your capital
By making fewer demands on your capital, asset finance opens you up to many more options. You can aim for better qualified staff, pay for training programmes, invest in research, improve virtual assets such as websites, allocate more to marketing and more.
Many businesses struggle to find the time to properly invest money back into the workings of the business, constantly stretched by the cost of equipment. Leasing allows you to build your business faster and more solidly.
2 – Better bookkeeping
With a constant, and known, level of outgoings each month the overall bookkeeping is simpler and far more cost-effective.
The positive knock-on effects can be considerable. Accurate forecasting is easier and being able to match required income to expenditure means you are not finding yourselves short one month or overworking inefficiently at other times to try to pay for high-value items.
Each month’s outgoings become a known quantity leading to a more streamlined workload and business that is easier to scale up.
3 – No nasty surprises
Ownership of any equipment comes with potentially unexpected repair or replace bills. Cars can suddenly need thousands of pounds worth of repairs, IT equipment can become obsolete and need investment to replace, previously loved equipment finds itself destined for the scrap yard.
By leasing you gain access to the latest equipment during its productive years of life. The latest IT technology means the ability to make use of the most current software advances, the latest vehicles mean an MOT-free, warranty-covered lifespan.
There are no sudden costs that can put your finances in a spin or leave an important asset gathering dust because the cost of repair is simply too prohibitive.
4 – Timely upgrades
Once your lease contract comes to an end, you are in the position of being able to make a full upgrade to the latest models, maintaining that up-to-date edge that has kept your business at the forefront of its field for years. You’re not tied in to the continued use of equipment that is reaching obsolescence.
Not having to find substantial amounts of cash to invest makes it much easier to upgrade or replace assets, allowing you to simply move forward with new leasing contracts for the newest equipment.
5 – Tax offsetting
Depending on your specific lease type, much of your leasing costs could be offset against your yearly corporation tax bill. And use of Annual Investment Allowances helps even further, allowing tax allowances on owned assets using hire purchase to spread the cost.
Asset finance from Maxxia
At Maxxia we work diligently to find the very best asset finance deals available. From van fleets to the latest computer equipment, we have the right deal to save your business money and the headache of complicated administration. Look here for more information, fill in our contact form to let us know your requirements or give us a call today on 020 7520 9450 to learn more and make your business budgeting headaches go away.