Investing in new equipment is essential for the growth of a business. One of the reasons a business needs new equipment is to enhance productivity. Modern equipment will streamline operations in your business leading to higher productivity.

You will not only benefit from efficiency, but you can also enjoy savings on energy bills as modern equipment are energy efficient. It is also an opportunity to provide your employees with the necessary tools allowing them to work efficiently. An increase in productivity is likely to result in an increase in revenue for the business. The asset value of your company also increases, giving the company more security and improving your future financing choices.

Options For Purchasing Commercial Equipment

There are three main options for a business looking to invest in new equipment.

·         Cash purchase

A business can choose to acquire equipment in a cash purchase. If the business has enough capital or savings, it can pay for the equipment upfront. In such cases, a business becomes the owner of the asset immediately and has the right to use and resell the equipment.

·         Loans

A business can also choose to utilize a loan to acquire new equipment. To qualify for a loan, the business will require to have a good credit score. The major downside of loans is the high interest rates. This only increases the total cost of a business acquiring new assets.

·         Hire purchase

A business can also opt for a hire purchase agreement when looking to acquire modern equipment. In a hire purchase agreement, the business doesn’t need all the cash upfront. You will only need a fraction of the total cost as a down payment and the balance is spread out to equal payments.

Commercial Equipment Hire Purchase Benefits

There are numerous benefits of acquiring equipment or assets on hire purchase terms. One of the benefits of a hire purchase deal is the opportunity to acquire assets without upfront payment. Companies that do not have enough capital to invest in equipment can opt for hire purchase as a faster way to get their hands on the latest equipment.

Hire purchase also allows a company to maintain a steady cash flow. By choosing a hire purchase, you will not be required to make big drawings from the business. However, you will only pay a fraction of the total cost in every month. This leaves the company with enough cash to spend on other business expenditures.

Learn more about hire purchase on our blog. Kenya Credit Traders is the leading hire purchase company in Kenya.