Apparently, poor cashflow management and understanding is a contributing factor in 82 per cent of small businesses failures. And last year, almost half of small businesses in Australia were found to have negative cashflows.
SIX QUESTIONS TO ASK YOURSELF WHEN CONSIDERING EQUIPMENT FINANCING
When it comes to financing medical equipment, there’s one question that needs answering above all others: “What is the useful life of this equipment?”.
Getting finance right is all about matching the structure of the asset to the structure of the finance – which means understanding when it would be better to buy and when to lease, as well as the structure of your lease and its effect on your practice’s bottom line.
Six common customer objections and how asset finance can overcome them
If you sell IT equipment and software, your customers’ problems are your problems.
Desperately seeking business growth?
If you are an allied health or fitness business, asset finance could be the answer.
Traditional financial institutions, like banks, are often not small business friendly. They don't understand it, they see it as intrinsically risky, and without a track record of profitability, they are unwilling (and unlikely) to lend money or finance equipment. And if you have the added challenge of being a start-up, you may be finding that access to the finance you need is holding you back.
Anthony Roberts, Managing Director, Eclipx Commercial talks to AMT magazine.
Whether you are in the business of manufacturing and selling equipment, or are a buyer of expensive equipment for your business, asset finance could play a key role in helping you achieve your business goals. Too often, banks are seen as one-stop-shops when it comes to finance needs, but the reality is that there are other, potentially better options. Anthony Roberts, Managing Director of specialist asset finance provider Eclipx Commercial, explains how the use of asset finance can have a far-reaching impact on the growth, and ultimate success, of your business.
Getting the capital structure right is crucial.
Don’t make your life any harder than it has to be.
Getting the mix of debt, equity and asset finance right, or in other words, optimising your capital structure, will make a substantial, and potentially critical, difference to the success of your business.
How to sell the benefits of asset finance to your customers and grow your business
If you are one of the 84% of businesses which don’t offer asset finance, chances are your business is not achieving its growth potential. In fact, small and medium sized businesses which offer asset finance report 80% higher forecast growth than businesses which don’t.
Five things to think about before you choose a partner.
Now you are convinced of the benefits of offering asset finance options as part of your sales process, the next big question is “who should provide that finance?”. You’re not a finance expert yourself – but the good news is, there’s no need to be. Your best bet is to partner with a reputable, professional finance provider with experience in your industry, and practical knowledge about the best options for your clients.
Your client’s capital constraints may be stalling your sales growth
Your customers need the latest technology and equipment to grow their business, but the large capital outlays required can mean they miss out. If your sales team are telling you that sales are being lost due to clients’ inability to finance the equipment they need, there is a solution.
Is your business growth as strong as it could be?
In our survey of 646 Australian SMEs with annual turnovers of A$5-100 million, we found that the average business is predicted to grow by 3.7% over the next year. Contrast that with 5.9%, the average figure for those businesses who, as equipment vendors, included financing options as part of their solution.