With interest rates so cheap at present, many businesses are opting to finance their business software acquisition, instead of paying cash.
They see that this frees up cash and provides the financial flexibility to meet business needs quickly and easily.
It does make sense – you can get your software in sooner without the huge capital outlay.
It's definitely worth investigating finance options – there are a number of benefits to the business, rather than spending your capital. Here are just three options:
Preserves cash flow
Instead of an upfront payment of the full amount, you can manage your software cost better by spreading that cost over a period of time, with fixed payment terms.
Tax advantages and budgeting
Under Rental or Lease, monthly payments are 100 per cent tax deductible. Under Hire Purchase you can claim the interest payments and depreciation on the software as a deduction. Payments are fixed throughout the term of the agreement, making it easy to budget your expenses.
The finance agreement can be structured to meet your needs. You may choose to finance over various terms. Payments can also be structured monthly, quarterly or annually, to suit your requirements. During the term of the agreement, you can also add or delete options through a simple variation.
Rather than reducing capital, which could be better used to keep business running, financing your software purchase is a great way to get things happening quicker. You gain the flexibility and financial breathing space you need, and you can start to grow your business much sooner.