Most businesses assume that they have to pay a large sum of money up front for their office or retail unit fitout. But on closer inspection of the market, you will find that this isn’t true. In fact, with fitout leasing, you can pretty much avoid all the upfront capital expenditure associated with creating your workplace environment.
Experienced entrepreneurs and business leaders reading this will understand what a big deal this is. Avoiding eating into your capital makes a massive difference in your overall profitability and the chances your firm will thrive.
In this post, we take a brief look at some of the remarkable benefits of fitout finance. Check them out below:
Enhance your cash flow
Experienced business leaders know that cash flow, not profitability, is most firms’ financial Achilles heel. Once accounts payable go into arrears, it can be challenging to pay staff and suppliers.
Fitout leasing ameliorates this. With fixed monthly payments, it is easier to budget and project your cash position into the future.
Preserve your capital
The opportunity cost of capital is high. If you spend it on one thing, you can’t allocate it to something else. Thus, money spent on a fitout can’t go into marketing or product development.
With fitout leasing, though, you can get around this issue. Instead of paying for everything upfront, you’re paying small sums monthly, allowing you to keep more of your funding for other activities.
Improve your tax position
Leasing is also a 100 per cent allowable expense against your taxable profits. It counts as a business expense, helping to reduce your taxable income.
Get a quick decision
Furthermore, it doesn’t take long to get approval for fitout leasing. Come to us for a quick consultation and find out more about our services and how they can benefit you.
Lastly, leasing your fitout allows you to spread your payments over a range of term lengths — sometimes up to five years. As such, it lets you free up your working capital and gives you more funds to make your business sustainable, particularly in the early stages.
Fitout leasing – where to find out more
Utilising finance options for this type of asset has become increasingly popular as it gives companies the opportunity to spread out the cash flow implications of what can be a significant cost to a business. Not only is there the cashflow benefit, there can also be some wider tax implications both over the short and longer term. Visit our fitout leasing page to find out more about the solutions we can offer. Or please get in touch to discuss how we may help you finance your next fitout project.