The UK economy has gone through a difficult few years, but the end is in sight and if the usual boom and bust cycle remains true, then we are about to experience a period of growth and change. The pace of that change in the world is rapid, start-up businesses and new technology push the boundaries and challenge the status quo every day.
Whilst the UK Government has put tax incentives in place that encourage SMEs to grow, often after a period of difficulty comes uncertainty about whether to invest. But as they say, fortune favours the bold, is yours one of the businesses that could benefit, or that gets left behind?
Find out how new equipment helps unlock potential in businesses and see if you’re ready.
New equipment will help you to:
1. Be more productive
New machinery and equipment tends to simply work better and faster allowing you to get more done, generating more income.
2. Benefit from tax incentives
A huge range of business equipment, plant and machinery are eligible for Capital Allowances, whereby the cost is written off against company profits, enabling the business to pay less corporation tax.
3. Be cost efficient and lower energy bills
New equipment is usually more energy efficient and has lower operating costs. Like an A-rated appliance or new engine, newer typically means a lower running cost so you’ll save money every time you use it.
4. Harness up-to-date technology
New systems, programmes and options allow any business to offer something new, attract more customers and stay ahead of competitors. Technological advancements are everywhere from warehouse automation to advanced skincare.
5. Improve safety standards
Older equipment tends to develop their own quirks as wear and tear takes its toll, in some cases reducing functionality. There’s also the possibility of safety risks, particularly in industries such as construction, logistics and healthcare. No-one wants a workplace injury of any kind.
6. Make money from the used equipment
7. Experience less breakdowns
Older equipment is more likely to break down, reducing output, costing operational time and money in repair costs.
8. Increase your range of services
Additional equipment can allow you to expand your range, offer more to customers, upsell new services, get ahead of the competition and generate more income.
9. Expand capacity and win new business
More equipment means the ability to increase your output, whether that’s more food served, more deliveries made or more items manufactured. Anything to win more customers means more revenue and the chance of attracting bigger customers or different groups.
10. Harness the feel-good factor
Who wants to have the business that turns up in the old van, or whose employees are having to make do with old equipment or outdated tech? Sometimes it just makes people feel good about their business and represents a good choice to customers if you’re simply running with up-to-date kit.
Still not sure? Here are some signs that you’re ready to invest in new equipment and trade-up:
- You’ve seen the ability to expand.
You know there’s the possibility of winning new contracts, serving more customers with more options, picking up bigger jobs, or simply there’s more demand for what you do.
- You’re ambitious.
Many business owners want to grow, generating a greater income from a bigger business is natural for entrepreneurs.
- Some of your equipment is ageing.
Its less productive, costing you time, money and causing inconvenience to you and your customers.
- You’re getting left behind.
Demand might even be falling because you’re not keeping up with the market, not offering the range your competitors do or simply can’t handle the work.
- You want customers to trust you.
Existing and potential clients want to see you can handle demand, that your businesses, their partner, is going somewhere. They want to trust you’ll be sticking around. Every business is also an extension of their customer. Using any retail outlet reflects the values of the shopper, just as choosing any service provider or supplier, reflects on the business partner. Do you want to be the business of choice?
Lets be realistic, there’s a handful of things to consider when looking at investment in any business:
- Evaluate your financial state.
Are you better off spreading the cost or can you handle the impact on cashflow of buying outright?
- New or used equipment?
Portman can help you finance both, but depending on what you need, refurbished equipment may be an option.
- Do I hire?
Hiring might be an option but it’s expensive particularly long-term. There’s a risk you can’t react to demand and that hire companies might not have what you want when you want it.
You might need to factor in the cost of training or additional staff. Unlocking additional revenue might come with additional commitments, these can usually be woven into a finance deal with Portman.
- What’s the demand like?
If you think equipment can unlock permanent opportunities and win repeat customers then it’s a good option. If it’s just to satisfy a one-off job, take a judgement how much money you’re going to make.
- Do you aim to grow or are you happy standing still?
Not everyone wants to invest in their business, some people are happy just ticking over.
We always recommend seeking advice from a qualified Tax Accountant before making large investments in your business.
If you’ve got the ambition to grow your business and want help to secure funding, the experts at Portman can source the right finance for you.
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