Is Financing a Forklift Purchase a Good Move? Yes, And Here’s Why.
Good cost managers always look for the best financial options to deliver business-focused outcomes. When it comes to equipment acquisition, there are two basic choices. You can pay the full price upfront, or pay progressively on a financial agreement.
The traditional, (and very often inappropriate) argument against finance is that “finance costs more”. The argument is a bit too simplistic for modern business, and also a bit misleading.
Paying interest costs more. Paying large amounts of cash upfront, however, can be a serious own goal for any business. There’s no good reason why a business would want to starve itself of cash just to acquire some equipment.
It’s determining the cost benefit of these two alternatives that matters the most.
- If you’re a smaller business, you’re quite right to be wary of major outlays. Finance may make better business sense in this regard.
- Then there’s the business values of the acquisition to consider. You may need the extra capacity for a new contract, or to help your business deliver more revenue. However, this doesn’t mean you want to spend a fortune right now to get that future earning capacity.
You can have the cake and eat it, too, with a good finance deal. Your finance deal, in fact, can pay for itself. This is how it works:
- Consider the value of the work for which you need your new forklifts.
- Define the revenue potential of your new capacity in dollar terms.
- Compare the finance costs with the earning potential.
- Does the revenue pay for the acquisition, without impacting the bottom line? You should see a net profit and the value of your acquisition.
Pretty simple, isn’t it? If finance eliminates the need for a major outlay, and delivers extra capacity and earning potential, problem solved. Finance is definitely the better option.
Less obvious, but very important, is another pretty straightforward cost management issue. Finance clearly defines your costs. You can easily nail down your net costs, revenue, etc.
Getting Value for Your Finance Deal
The next issue is the actual acquisition:
- Do you need more capacity in a specific role, or multiple roles?
- Do you need a range of different vehicles for your business?
- Do you need agile vehicles for your site, or on multiple sites?
- Do you need specialist forklift attachments?
- Do you need heavy lifters; indoors, outdoors, or both?
The trick to getting the best finance deal is to source your new equipment from specialist forklift suppliers. You may be surprised to learn that you can get a truly excellent range of forklifts and attachments for great prices on a finance deal.
Whether you want a big high-capacity monster for heavy lift work, or a nippy but tough little go-everywhere forklift for onsite handling, these suppliers can deliver the right vehicle at a budget-friendly price.
Specialist suppliers know the forklift market. They also know how to price competitively. Better still – specialist suppliers have all the top brands, like Crown, Linde, Toyota, and Manitou, the market leaders. These big brands have all the high performance gear and specialist capacity you need for superior performance.
Trying to Find a Good Finance Deal for Forklifts in Sydney?
Aussie Forklift Repairs offers a great selection of finance options for top brand forklifts in Sydney. See our website and talk to our forklift experts by calling on (02) 9679 8992 or contact us online. Ask us about our budget-friendly finance deals. We’re happy to assist and find you a great deal.