01 Feb Financing a forklift purchase – what you need to know
Financing a forklift purchase in Melbourne can be a good idea if you’re looking to free up cash flow and keep some money in the bank for emergencies. Keep reading to find out more about the reasons some people decide to finance their investment.
The pros and cons of financing
Easier access to funds in case of emergencies
The world of business is unpredictable, especially in these uncertain times. Being prepared – especially financially – for what may come your way is a strong position to be in. This of course will depend on your current financial situation.
Consider this – if something were to happen tomorrow and you needed access to funds quickly, if you had spent your savings on new forklifts for your fleet, is this something you’d be able to support? If the answer is no, then financing a forklift and retaining the extra money for a rainy day may be the best choice.
Better cash flow
Purchasing additional forklifts for your fleet may not be the only opportunity you’re considering. While purchasing brand new forklifts and owning them outright might feel like a more comfortable choice, there may be more financially beneficial options to consider.
Financing new forklifts will leave cash flow open for investments that may benefit your business better in the long run. For example, if you are needing to hire additional warehouse staff which will increase productivity and profit then that might be the priority.
The dreaded interest
Of course the idea of having to pay interest and additional fees on top of the cost of a forklift is enough to make anyone pause. The rate will depend on the market at the time as well as the financier you choose so this is at least somewhat within your control. Breaking down the interest costs over the repayment term may also make this seem like less of a burden if it takes some of the pressure off of an upfront cost.
Time spent finding the right lender
Sourcing a lending company that is right for your business can be difficult and have a significant time investment. However there are many options out there and investing the time in determining the best financial option is always worth it.
Forklift hire and sales in Melbourne
Whether this blog has helped you decide on financing a Melbourne forklift purchase or not, look to the experts at Triwest for an extensive range of new or refurbished forklifts to rent or buy. We have over 40 years of experience in the industry and we’re a trusted, local name who only work with the best manufacturing brands.