At Smartline Mortgage Brokers Rockingham, we have made our reputation brokering home loans in the Kwinana, Rockingham and Baldivis areas but did you know that we provide business loans, too? We offer business finance for equipment — from farm machinery to restaurant equipment to heavy construction machinery.
So, how do you know when it is time to invest in new business equipment? Everyone’s situation is different and is treated on an individual basis but there are some good basic guidelines that one can follow in assessing whether or not it is time to invest in new business equipment.
Often, the main question is, “Can I continue to use old equipment or should I spend money on new ones?” Even old equipment can be used for a long time if it is properly maintained and updated. Here are some basic reasons for buying new equipment.
This is the biggest “no-brainer” in business. If a piece of equipment represents a safety risk, it is no longer appropriate to use it and it should be immediately replaced. Depending on the level of equipment, from small business to big business, an unsafe piece of equipment could cause injury, death or even an environmental incident—none of these is acceptable.
An employer who knowingly asks an employee to use unsafe equipment can lose their entire business and assets in a lawsuit and can even be subject to criminal prosecution.
No Longer Cost-Effective
When maintenance costs become too high and cut into the bottom line, it is time to purchase new equipment. This can be due to government regulations forcing changes to your equipment in areas such as emissions or the cost of repairs and spare parts could be too high.
No Longer Meets Production Requirements
Often, a machine will be in great working order but every competitor has one that will produce twice as much product as yours. This will obviously become problematic and affect your ability to compete in the marketplace.
We Have Great News for You
Is your equipment in need of an update? We can provide access to plenty of lenders who offer business loans for many different purposes. If you are thinking about replacing your old equipment, call (08) 9527 1800.