Many companies in Singapore are struggling to find the capital to purchase equipment necessary for their business operations to continue functioning at optimal capacity, especially with the global economy in its early stages of recovery due to the coronavirus.
An increasing number of businesses in Singapore are turning to alternative methods such as equipment leasing or hire purchase. In essence, these methods help businesses acquire equipment that would normally be too expensive to buy with cash. In this article, we will be covering some of the ways an equipment leasing and hire purchase can help you finance your business and ride out this rough economic patch.
The Difference Between Equipment Leasing and Hire Purchase
Both equipment leasing and hire purchase are great ways to finance your business’ need for new or improved equipment. Opting for either one has its own major benefits but what’s the main difference?
Essentially, leasing allows you to rent an asset for a specific period of time for an agreed fee. At the end of your lease agreement, you will have to return the equipment to your rental company in its original condition or risk paying extra fees.
Alternatively, hire purchase allows you to purchase and use expensive pieces of equipment without incurring a major outflow of cash. You will have to make an initial down payment, followed by monthly payments for a fixed time period. After all the repayments are made at the end of the period, you will have the option to own this asset.
Now that you know the difference between the two options, let’s explore how you can use these methods to improve your business operations.
Buy New Equipment or Repair Existing Equipment
Even if your business is well-established, you may not wish to spend a large portion of your revenue on equipment as preserving working-capital is vital in paying off short term expenses and debts.
Depending on the specific needs of your business, having money on-hand can significantly improve your company’s level of productivity, whether you have faulty equipment at hand that needs repairing, or a need to upgrade your equipment to expand your business. The purchase of new equipment can be helpful for your business if it improves processes and increases competitiveness in your industry by meeting consumer demands.
Conversely, if a piece of equipment that’s crucial to your daily operations needs repairing, opting for leasing alternatives can also be exceptionally helpful in reducing downtime, and any related financial losses from the equipment breakdown for the time being.
At ETHOZ, we have your best interests at heart. Aiming to preserve your cash flow and improve your business, we provide equipment leasing and hire purchase at affordable rates that are easy to obtain. That way, you can finance your purchases with low or no downpayment, freeing you to focus on growing your business and using your working capital for other pressing needs.
Invest in Small Pieces of Technology
With the right financing, you will have the ability to invest in equipment that will not only increase the level of efficiency in your business but create better customer experiences, which will aid in forging better relationships with your customers and employees.
Instead of financing major operational upgrades, you may want to consider investing in smaller pieces of technology that will have an impact on customer satisfaction, which will ultimately improve business performance.
For example, if you own a business in the F&B industry, you could invest in tablets to provide customers with a more efficient method of ordering, and at the same time ease the workload of your employees. The tablets can also be used as an effective way to get customers to leave feedback or reviews, which will be a great avenue for you to develop some ideas on how you can improve your business to establish brand loyalty and generate greater revenue in the future.
Go Green: Utilise Energy-Efficient Equipment and Appliances
Having an environmentally-friendly business can be an effective method to save costs in the long-run, ultimately allowing you to run a cost-effective business.
There are a few easy ways to go green when you look into leasing or hire purchase of your new equipment. You can invest in energy-efficient equipment and appliances such as air-conditioning facilities which will help save money on energy costs.
Another way to save on electrical bills is to install energy-saving features like motion sensors around your workplace which will detect when people are present, managing the use of electrical appliances at your place of business without you having to worry about wastage. If your place of work is an office, you may also consider switching to laptop computers as they are generally more efficient and use 80% less energy than desktop computers.
Moreover, owning a green business also comes with attractive tax incentives. If you’re interested in finding out more about how you can use equipment leasing or hire purchase to invest in energy-saving equipment at your workplace, feel free to consult our professional relationship managers at ETHOZ. With the right plan, we can help you make a lasting impact on your business using equipment financing.
Finance Your Business in Singapore
If you’re short on funds but in need of new machinery and equipment, ETHOZ provides the solution to all your equipment financing needs. Ease your mind and finances with us as we provide you with attractive equipment leasing and hire purchase packages that will help you take your business further.
Our professional relationship managers that are ready to take your call are also well-qualified and trained to make the process as hassle-free and convenient for you. Contact our team at 66547799 or drop us an email at firstname.lastname@example.org today!