Should you buy assets before the end of the financial year?

Whether you’re looking to upgrade a motor vehicle, purchase technology for the office, invest in new equipment, or strengthen your tax position, correctly structured asset finance can unlock significant benefits for your business.

Eligible asset purchases financed before 30 June may qualify for immediate deductions or other tax benefits under Australian tax law. Working with your accountant and finance specialist ensures the structure supports the best tax outcome.

If you have spoken with our accountants about reducing your taxable income for 2024 and/or you wish to claim back GST to help improve your cash flow in time for EOFY, our Lending Advisors are perfectly placed to assist you with your finance needs.

Key benefits of asset finance before EOFY

Improve cash flow management

Rather than tying up large amounts of capital in upfront purchases, asset finance allows businesses to maintain liquidity. Spreading repayments over time means you can invest in growth without placing strain on operational cash flow.

Access immediate tax advantages

EOFY asset purchases can often qualify for accelerated depreciation or even write-offs.  We can work closely with your accountant to ensure you structure asset purchases in the most tax-efficient manner.

Upgrade technology and stay competitive

EOFY is an ideal time to assess whether outdated equipment, machinery, or technology is holding your business back. Upgrading assets through tailored finance solutions can increase productivity, reduce maintenance costs, and enhance your competitive position heading into the next financial year.

Strengthen borrowing capacity

By using structured equipment loans and asset finance facilities, businesses can preserve existing bank lines and working capital reserves. This approach improves overall borrowing capacity and positions the business for larger funding needs in future expansion plans.

How does asset finance improve business cash flow management?

By spreading the cost of assets over manageable repayments, businesses can maintain liquidity, avoid large lump-sum payments, and allocate working capital towards other growth initiatives or operational needs.

Is asset finance better than paying outright for new equipment?

Asset finance often provides more flexibility and preserves capital compared to paying outright. It enables businesses to access the assets they need without reducing cash reserves, supporting both short-term stability and long-term expansion plans.

Choosing the right asset finance solution

Not all asset finance options are created equal. The key to maximising the benefits of equipment loans before EOFY lies in structuring the right facility:

• Ensure repayments align with projected cash flows
• Negotiate flexible terms that suit business needs
• Explore end-of-term options such as ownership transfer or upgrades
• Understand any tax implications or benefits associated with each facility type

Reach out now and we will help you secure the right asset finance strategy before EOFY.