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Affordable payment options for your new mobile business

Paying with finance instead of cash offers several advantages, depending on the specific circumstances and goals of the individual or business:

1.

Preservation of Cash Flow

Using finance allows businesses to preserve their cash reserves for other purposes such as emergencies, investments in growth opportunities, or operational expenses. By spreading the cost of purchases over time, businesses can maintain healthier cash flow levels and ensure they have sufficient liquidity to meet short-term obligations.

2.

Leverage

Financing enables businesses to leverage their existing capital more effectively. Rather than tying up large sums of cash in upfront payments, they can use financing options such as loans or lines of credit to access additional capital. This allows businesses to invest in growth initiatives, expand operations, or seize new opportunities without depleting their cash reserves.

3.

Capital Allocation

Financing provides businesses with the flexibility to allocate capital more strategically. Rather than allocating a significant portion of their capital to a single purchase or investment, businesses can spread payments over time and allocate capital to a broader range of initiatives that offer higher returns or strategic value.

4.

Tax Benefits

In some cases, the interest paid on business loans or financing arrangements may be tax-deductible. This can result in potential tax savings for the business, reducing the overall cost of financing and improving its financial position.

5.

Asset Utilisation

Financing allows businesses to acquire assets or equipment without tying up large amounts of cash upfront. By spreading payments over time, businesses can begin utilising assets immediately to generate revenue or improve productivity, while preserving cash flow for other operational needs.

6.

Hedging Against Inflation

Financing arrangements with fixed interest rates can provide businesses with protection against inflation. By locking in borrowing costs at a fixed rate, businesses can mitigate the impact of future inflationary pressures and ensure predictable cash flow and expense management over time.

There are options to spread the cost of your mobile business with support from our range of finance partners who specialise in finance for commercial vehicles and equipment. An opening conversation and indicative quote can be obtained from one of our partner (Kennet Equipment Finance) by requesting a callback by clicking here.

Contact Kennet Finance

A Recent Client Success Story...

Customers queuing outside Piaggio Ape van for Dear Coco drinks

It’s well publicised what a healthy brick & mortar financial model should look like. But what about a street coffee business with its differentiated trading, cost and net profit model? At the risk of feeling inadequate, scared, self-promotional or a showboat… here is an all-access look at the Dear Coco business results for the last 12 months.

Trading Period: 1 January to 31 December 2022 (trading 50 weeks, 5 days per week)

Total Revenue : GBP £144,560 (USD $177,000, AUD $265,000, EUR €165,000)

Net Profit: 40% (versus a more typical net profit of 5-10% for brick & mortar cafés)

Operating Costs: 60% – Read the full financials here

Customer: Dear Coco London (Extracts from FLTR Magazine)

Ready to fund your new mobile coffee business?