What is Office Equipment Finance?
Creating a safe and comfortable workplace for your employees isn’t just a legal obligation. It’s also a key part of fostering productivity. From ergonomic workstations and equipment to flooring, lighting and soft furnishings, the cost of kitting out your office can quickly mount up. Office equipment finance plans allow you to spread the cost of setup and maintenance, so you don’t have to choose between cutting corners and draining your cash reserves.
How Does Office Equipment Finance Work?
Here’s a quick overview:
Term and Repayment:
Office equipment finance typically involves a longer term of up to five years, with affordable monthly payments. These payments include interest and VAT and will remain the same for the duration of the agreement. Some plans allow you to pay off the remaining loan amount early, but this will often incur a penalty.
Lender Requirements:
As well as the usual credit and security checks, you’ll need to provide the lender with documentation about your business’s finances. What they’ll ask for will depend on how long your company has been established, but it might include accounts and income statements, a balance sheet and cash flow forecast, plus any major customer agreements.
What options do I have to finance my new office setup?
The three major options are as follows:
Hire Purchase:
Here, the lender buys your office equipment up front, and you pay them back with interest. Once you have made all your monthly repayments you can take ownership of the equipment, usually in return for a small fee.
Operating Lease:
The lender buys the equipment, but your monthly repayments only entitle you to use the assets, not to own them. When the term comes to an end, you can choose between continuing the agreement, returning the items to the lender, or selling them on. If you sell them, you’ll keep a percentage of the proceeds and the rest will go to the lender.
Finance Lease:
This type of lease arrangement is usually the most affordable because your repayments are calculated on the equipment’s predicted residual value. At the end of the term, the lender sells the equipment to recoup the remaining cost. You can end the lease at this point, rent a set of replacement equipment, or go for an upgrade.
If you’ve already invested in expensive office equipment, many lenders will allow you to refinance it to free up some of the value. You can use this to plug a gap in your cash flow or invest in growing your business.
What kind of office equipment is eligible for finance?
IT infrastructure, printers, scanners and photocopiers
Telecom systems and audiovisual equipment
Workstations and furniture
Lighting, carpeting and fittings
Some specialist lenders offer package finance plans for entire office setups, right down to the wallpaper. There are also green asset plans that support you to purchase energy-efficient and sustainable equipment.
Finance Your Office Equipment
Need funding for office furniture, printers, photocopiers or IT systems?
Submit your enquiry using the form below or speak directly with our team to explore flexible office equipment finance solutions.
At Wenham Specialist Finance, we help businesses spread the cost of essential office equipment while protecting working capital.