We continuously advocate non-traditional lending options, when it comes to getting smart about your real estate agency’s cash flow situation. Being creative with your cash can only mean good things for working capital, liquidity and ultimately the financial health of your agency.

The benefits of equipment finance

If you have plans to grow your agency but feel restricted by stagnant cash flow and assets that are under-utilised on the balance sheet, equipment finance could be a great way to start unleashing the liquidity you need to move forward.

What’s more, many equipment finance providers also consider working with start-ups too. So if you’re just setting up your agency and need to make significant investment in office equipment, there’s even more reason to consider equipment finance.

Similar to an advance commission arrangement, equipment finance will provide your agency with financial certainty through an injection of cash that you can re-invest into your business.

How does equipment finance work?

Each provider of equipment finance has their own terms of doing business of course – but in general equipment finance is based around the following principles, most of which is usually flexible to the specific requirements of your agency:

  • Your equipment will be valued at an agreed percentage of market value
  • Repayment terms could include 12, 24 or 48 month arrangements
  • Lending amounts of up to $150,000 are usually open for negotiation
  • Equipment finance is applicable to both new or old equipment
  • Depending on the type of business equipment, potential tax benefits could exist too

Equipment finance could apply to a wide range of equipment you already have on your premises. Like many others, your agency will probably have a number of PCs, servers, franking machines, folding machines, photocopiers, plus lots more.  If you haven’t yet considered equipment finance as a means to bring in more cash, you may want to give it some thought.

Of course equipment finance is only one option available to help your real estate agency overcome the common frustrations and limitations of poor cash flow.  If you haven’t already looked into an advance commission arrangement, get in touch with our friendly team to find out how we can help you with same-day access to commission payments.