For most companies, equipment of any kind generates revenue or provides management information to better direct their company towards more revenue.
Financing equipment matches the outgoings with the revenue the equipment can generate or contribute towards.
- Investing company funds in depreciating assets gives a negative IRR. Investing company funds in your core business and appreciating projects gives a positive IRR.
- Match equipment life to the repayments, instead of a lump sum on day one to acquire the equipment.
- Bundle managed services contracts with suppliers as an operational expense.
- Consider the benefits of a US$ based facility as opposed to a local currency facility.
- Future projects can be brought forward as monthly repayments are managed without a lump sum being paid for equipment
- In many cases, 100% of the equipment cost can be financed