The Benefits of Asset Finance
How Asset Financing Could Help Your Business
Need new equipment for your business? Have you considered asset financing?
There are very few jobs that don’t involve some form of specialist equipment. From software and IT equipment to industrial tools for building and construction sites – industries of all shapes and sizes require specialist apparatus to successfully function.
But having the latest kit comes at a cost, meaning many businesses have to make do with outdated equipment. Not having the right tools for the job, however, can have a detrimental effect on your business, ultimately impacting your bottom line.
We explore some of these issues below, as well as explaining why asset financing options may be the best way to source the necessary equipment for your business.
Unfortunately, all tools have a shelf life. And although trying to make the most of a tool or piece of equipment for as long as possible may seem efficient at first glance, it can actually be counterproductive. Slow computers, non-responsive tools and temperamental vehicles not only present a potential safety hazard, but they slow down productivity.
Sooner or later, using equipment past its best will begin to cost you money. Investing money into new equipment by asset financing will mean that employees can spend the majority of their time working efficiently rather than looking for a fix, which in turn results in higher productivity. One of the biggest benefits of asset financing is the ability it gives a business to source new equipment, allowing you to instantly improve efficiency.
2. Technological Advances
Staying in line with efficiency, one of the best ways to stay productive is to ensure that the tools or equipment you are using are of a specification that delivers maximum benefit to your business. Replacing equipment is one thing, but replacing it with a much more advanced model that will streamline your processes makes the investment even more financially beneficial.
For example, new equipment may offer the potential to automate labour intensive processes that currently take up valuable employee hours. The result? Reduced overheads, increased productivity, and employees who are more motivated through a lack of spending their time on monotonous tasks.
3. Employee Engagement
Aside from equipment that allows automation, the majority of the tools or equipment that you need to source will be operated by dedicated professionals who very much rely on the efficiency of the technology to complete their job. Being made to work with equipment that is not fit for the job not only slows down activity, but can have major effects on employee motivation and engagement.
Not feeling appreciated by having to perform responsibilities with sub-standard equipment, not to mention the struggle to do so, can affect employee engagement over time. Investing in new equipment is as much an investment in the employee using it as it is in the equipment itself.
4. Staff Turnover
Keeping staff happy and engaged is the key to retaining them, and ensuring that they have the right tools and equipment to do their job properly is one of the best ways to maintain engagement. Reducing staff turnover not only increases productivity by sustaining a dedicated workforce, but also reduces the time and cost involved with having to recruit and train new employees.
From office furniture to industrial tools or up to date software, having new equipment can keep staff happy, which in turn reduces overheads and improves efficiency through encouraging a dedicated, integrated workforce.
5. Delivering Expectations
Among all the benefits to employees – safety, efficiency, engagement – new tools and equipment ultimately allow you to provide the best possible service to customers, too. Outdated equipment can cause errors and delays, which can result in your business failing to deliver to customers as expected. The right equipment allows for the best possible service to be delivered, ultimately improving profits and your customers’ perceptions of your brand. Asset financing in the form of equipment leasing therefore not only improves employee engagement and motivation, but the overall deliverables of your business, too.
New tools, equipment and furniture can be a very costly overhead. But as explored above, they are an investment rather than a mere expenditure. Acquiring equipment without tying up capital is a financially sensible way of improving necessary tools and equipment without detrimentally interrupting cash flow.
Learn more about asset financing from Anglo Scottish or get a more detailed look at how an asset financing solution in the form of equipment leasing could work for you with our asset financing guide.
Alternatively, contact us today to see how we can help your business with asset finance solutions.