No matter how established your business is, its success depends on the quality and condition of your equipment.
What would you do if your restaurant’s oven broke down during the evening rush? Or if your gym’s outdated treadmills started causing complaints? Or if your grocery store’s coffee machine malfunctioned during the busiest part of the morning?
Replacing or upgrading equipment is urgent in these situations, but dipping into your cash reserves could strain your business. This is where equipment financing comes in as the perfect solution.
In this blog, we explore how equipment financing is a valuable tool that allows businesses to grow, particularly in the gym/leisure, restaurant and retail sectors.
What is equipment financing?
Equipment finance is an effective funding tool that helps businesses acquire the machinery and tools they need without the burden of paying the total upfront cost. Instead of a heft of upfront expenses, financing lets you spread the cost over time through manageable payments.
It ensures you can quickly access the essential tools you need to maintain operations, enhance your offering and customer experience and stay competitive in your industry.
This type of financing can be tailored to your business’s specific needs, allowing you to maintain cash flow, preserve working capital, and keep your business running smoothly while staying ahead of industry demands.
Which industries benefit from equipment finance?
Equipment financing is a valuable tool for businesses across multiple industries, but especially those that require frequent machinery upgrades, including:
Gym/leisure industry
From cardio machines to strength-training equipment, the quality and condition of your gym gear can make or break your reputation. As fitness trends evolve, so do your clients’ expectations. To meet these demands, it’s essential to have access to the latest equipment that enhances the workout experience.
Restaurant industry
In the restaurant industry, the quality of your kitchen equipment is just as important as the quality of your food. High-performance appliances, from commercial ovens and refrigeration units to state-of-the-art cooking technology, are essential for delivering a memorable, positive dining experience.
Retail industry
For retail businesses, from clothing to convenience stores, it’s crucial to be able to quickly and affordably upgrade essential technology, such as modern tills, EPOS systems, and beverage or food machines. This allows you to stay competitive, expand your offering, and improve operational efficiency.
What are the benefits of equipment finance in these industries?
Reducing maintenance costs
Old, worn-out equipment can lead to frequent breakdowns and costly repairs. By financing newer, more reliable machines and equipment, you can reduce maintenance costs and minimise downtime, keeping your business running smoothly.
Flexibility in upgrading or replacing equipment
Equipment financing offers the flexibility to upgrade or replace machines as new trends or technologies emerge, allowing you to adapt quickly and maintain a competitive edge in your market.
Payments can be 100% tax deductible
One of the significant advantages of equipment financing is the potential tax benefits. In many cases, the payments you make on financed equipment can be 100% tax deductible against profits, allowing you to reduce your taxable income while increasing your business’s capabilities. (Please seek independent financial advice to learn more based on your individual business circumstances.)
Manageable repayments and seasonal income variations
For seasonal businesses, income fluctuations can make substantial asset purchases challenging. By allowing you to spread payments over time, equipment financing via a seasonal lease will enable you to maintain steady cash flow even during off-peak seasons, helping you manage the highs and lows in income without compromising your operation.
Equipment finance leasing solutions from Shire Leasing
At Shire Leasing, we’ve been a trusted finance provider to businesses seeking reliable and tailored funding solutions since 1990.
We’re committed to helping businesses across various sectors stay ahead of the curve and achieve their growth goals. With a track record of supporting over 60,000 British SMEs, we offer a range of funding solutions designed to meet the unique needs of your business. Our extensive portfolio, exceeding £200 million, combined with our network of funders, allows us to find the best financing solutions for you.
We understand that every business is different, which is why our in-house underwriting team personally reviews each deal, striving for a higher acceptance rate and customised solutions. From your initial consultation to securing the best terms for your equipment needs, our team are on hand to ensure your business continues to succeed.
If you’re interested in learning more about your equipment financing options, don’t hesitate to get in touch with Shire Leasing today.
