Finance Packaging Machinery

Figures are based on an established business trading over 3 years and are subject to credit approval.

 

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Finance packaging

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.

Hire Purchase Agreements: Own Your Success.

A hire purchase agreement is a commercial finance option that allows your business to acquire new equipment immediately while spreading the cost over time.

How it Works.

  • Initial Deposit: A manageable upfront payment to commence the agreement.
  • Fixed Instalments: Regular payments are made over an agreed period.
  • Transferred Ownership: equipment ownership is transferred once all payments are made.
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Finance Packaging Benefits for Food & Bakery Companies

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

Unleash Flexibility with Operating Lease Agreements

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.)

How our Lease Agreements Work

Operating lease agreements offer businesses the opportunity to utilize high-value assets without the long-term ownership commitment.

  • Regular renting costs: Involves making payments throughout the duration of the lease.
  • Flexibility: At the end of the lease, you can return the equipment, extend the lease, or upgrade to newer technology.
  • Off-Balance Sheet Financing: The leased asset and associated liabilities are not listed on the company’s balance sheet.
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Benefits for Food & Bakery Companies

  • Low Upfront Costs: Less initial expenditure than purchasing.
  • Up-to-Date Equipment: Regular upgrades ensure you have the latest technology.
  • Maintenance Inclusion: Often includes service and maintenance, reducing operational risks.
  • Balance Sheet Management: Can improve financial ratios as the obligation does not appear as debt.

Making the Right Choice

When deciding between a hire purchase and an operating lease, consider the following:

  • Long-term Value vs. Flexibility: Do you prefer owning an asset or having the flexibility to upgrade frequently?
  • Financial Health: Consider your balance sheet implications and tax position.
  • Equipment Lifespan: Will the technology become obsolete quickly, or does it have a long useful life?

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.

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Ready to Bake Up a Storm?

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.

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