Equipment finance encompasses various funding structures that help businesses acquire machinery, technology, and specialised equipment through monthly payments rather than large upfront purchases. These finance options include chattel mortgages where you own the asset from day one, hire purchase agreements with ownership transferring at completion, and operating leases that provide usage rights without ownership obligations, each offering different tax benefits and cash flow advantages.

This financing approach allows businesses to maintain working capital for core operations while still accessing essential machinery and equipment needed for growth. The structured payment approach makes it particularly attractive for companies experiencing seasonal cash flow variations or those wanting to preserve capital for other investments. Many arrangements offer flexible terms, balloon payments, and potential tax deductions that can significantly improve your business's financial position.

Purchasing business equipment outright typically requires substantial cash outlays that can severely impact working capital and limit operational flexibility. When companies buy machinery with available funds, they often sacrifice growth opportunities and strain their cash reserves unnecessarily. This cash-heavy approach leads businesses to delay essential equipment upgrades, miss expansion opportunities, and forgo the tax planning benefits that come with properly structured equipment finance arrangements.