EXPERIENCE WARNING: Get Your Asset Financing Sorted Before The Christmas Rush!

We witness it every year: as Christmas draws near, there is a frenzied scramble to acquire assets before the year ends. Many businesses realise in the weeks before Christmas that they want to make some important purchases before year-end, but they do not plan ahead and find it difficult to secure asset financing in time. Many ultimately lose out on opportunities.?

Let's take a look at some of the key considerations to keep in mind in order to optimise your asset financing as Christmas draws near.

Let's take a look at some of the key considerations to keep in mind in order to optimise your asset financing as Christmas draws near.

Timing Is Everything

If you are thinking about buying an asset as the year draws to a close, timing is everything. This time of year is prime for many businesses to make strategic investments in assets so that they can go into the new year with those assets ready to be deployed. Many of these investments are needed to bolster productivity and profitability and boost operations.?

While the holiday season brings its own set of demands, it's important that you plan ahead and don't wait until the last minute. Making a timely decision can help you capitalise on the available opportunities and position your business to succeed in the new year.

What Are Your Financing Options?

Making a decision to purchase an asset is only the start of the process. You will also need to give due consideration to the different financing options that might be available to you.?

Asset financing can come in a variety of forms, ranging from term loans to asset-backed loans and leasing arrangements, to name a few. The asset financing option that you choose to go with will depend on your particular circumstances, with each option having its own advantages and disadvantages. The goals and needs of your business will determine which financing solution is right for you.?

Whatever you end up choosing, you will need some time to submit your application and get approved before making the purchase. This is a key part of why you shouldn't leave it too late if you wish to have the asset in hand before Christmas.

Tax And Budget Considerations

Many businesses want to purchase assets towards the end of the year as a way to ensure that their budgets are spent. In addition, purchasing assets before the clock runs out can help you leverage tax incentives, depreciation benefits, and other deductions that might be available should the asset be purchased before the end of the year.?

To ensure that you don't miss out on this opportunity, you should work with your financial team and seek taxation advice so that your asset financing can be structured in the best way possible. It should also be timed to maximise the benefits you could gain while remaining compliant with all relevant regulations.

[CTA] There are a lot more factors to take into account, but the most important thing is to be ready and to begin organising your asset financing requirements well in advance of Christmas. Don't get caught in the rush. Speak to Ron C Finance today to get ahead!