Is it Possible to Finance a Business Entirely with Loans?
Here’s a question for you. How many start-up companies do you think actually have the financial capabilities to cover the cost of their assets and operations from day one? Venture a guess: one? Fifty-one? The answer might just surprise you – for instance, did you know that the reason why the tax office allows companies to repay their first year of tax in year two, is because the first year is set aside to receive a loss?
You read that right – as a business owner in your first year, you aren’t even expected to be able to meet your profit margins, so you will receive a full further 12 months to accumulate the cost of what you owe. So, here’s another question – what about those that take out non-mortgage loans and business financing solutions?
Well, that’s another story entirely. The main hurdle that businesses have to overcome is covering the cost of their assets and operations once they are established. As you might imagine, this can cost thousands of dollars and if we’re honest; it’s money that plenty of people just don’t have. So, what if you wanted to dive in at the deep end, enjoy a steady profit and be able to reap the rewards of a fully functional company – without having to simply make-do with the cash that you have available?
It’s so easy – just consider financing!
Equipment financing can be a great way to cover the cost of your assets, resources, machinery and vehicles using a lenders’ money. And as you’ll be able to borrow however much you need (in most cases), you won’t have to worry about repaying ridiculous costs at a rate that puts you at a disadvantage.
You can simply borrow what you want, buy what you need and then repay what you received over a period of time – which can typically be stretched to 8 years. Don’t fancy paying the interest back? Pay your loan off sooner. Want to minimise what you pay back each month? Prolong your repayment plant for as long as possible.
It really can be as simple as that. Financing is a great way for new businesses to receive the support that they truly need, but it’s also available to established companies that could do with a little more financial support ready for the year ahead!
Tundra - Experts in Business Finance
(03) 9021 3774
Tundra Business Synergy
Credit Representative Number 496186 is authorised under Australian Credit Licence Number 389328.
ABN - 63 007 814 458.
Member of MFAA.
Disclaimer: Your full financial situation would need to be reviewed prior to acceptance of any offer or product.