Figures are based on an established business trading over 3 years and are subject to credit approval.
Finance packaging machinery can be a game changer for your business. In the dynamic food and bakery industry, staying ahead often means upgrading to the latest machinery and technology. But how do you balance the need for investment with the practicalities of budgeting and cash flow? Two financial tools, hire purchase agreements and operating lease agreements, can be instrumental in navigating this challenge.
A hire purchase agreement is a commercial finance option that allows your business to acquire new equipment immediately while spreading the cost over time.
Capital Conservation: Preserve working capital for day-to-day business needs.
Budget Friendly: Fixed monthly payments make budgeting simpler.
Tax Efficient: Interest and depreciation may be tax-deductible.
Equity Building: Payments contribute to eventual ownership and also help build your business assets
Operating Lease Agreements: Flexibility on Your Terms (An operating lease is a rental agreement offering the use of equipment for a fraction of the asset’s life.)
Operating lease agreements offer businesses the opportunity to utilize high-value assets without the long-term ownership commitment.
When deciding between a hire purchase and an operating lease, consider the following:
Both options offer different pathways to growth without compromising your immediate financial stability. They are especially beneficial in an industry where having the latest equipment can mean a world of difference in product quality and production efficiency.
Investing in new machinery can be a game-changer for your food or bakery business. With hire purchase or operating lease agreements, you can maintain the financial health of your business while also positioning it for future growth.
Want to discuss how these financial tools can help your business rise to the next level? Contact us, and let’s craft a plan that suits your appetite for growth.