That’s it you decided. You know what equipment to invest in and you know the purchase price. Now we have to fund it. In cash? By borrowing or renting?
To find the right financing method, reassure increasingly demanding financial partners, your accountant is at your side to help you choose the best solution and evaluate with you the economic benefits of this investment.

Because whatever the amount of your investment, you will have to motivate your request and present a solid financing plan that demonstrates the feasibility of your project.

Self-financing

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Do you want to self-finance your purchase? The advantage of self-financing is that it is free (thanks to previous profits) and protects you from the high cost of credit. You will not have any repayments to expect and you return the image of a healthy and prosperous company.

But to choose this solution you need to know your real self-financing capacity by avoiding spending all your cash, which could be used more judiciously especially if the interest rates are low.

Moreover, the use of profits for self-financing does not make it possible to remunerate the shareholders. Finally, most often, self-financing can only cover part of the investment. An expert accountant like Finexcom in Montpellier then performs for you a simulation by optimizing the assumptions and helps you to find the most appropriate level of financing.

Bank loan

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Another obvious solution is the classic loan. It will require establishing a complete file for the bank. The accountant can help you design this file to meet the criteria for obtaining financing, by collecting all the necessary information. It assesses your financial situation based on your balance sheets and the impact of your investment on your financial situation.

It establishes your real repayment capacity, one that will not put the company in danger, and credibility your application with the bank. Finally he enlighten you on taxation. Once the necessary file has been established, he can contact the bank directly to negotiate the best terms possible with him. At the key of substantial savings.

The LDD

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The long-term lease or LLD is to buy the property for professional use necessary for the activity by a financial institution. In exchange, the latter rent it to you via a lease agreement with no option to purchase at the end of the financing. The costs are related to the booking fees, the deposit (returned at the end of the contract) and rents HT. Here again, the accountant helps you by performing a simulation, accompanies you to your bank if you want to finance this rental and takes stock of VAT.

Leasing or leasing

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It saves cash by renting your equipment rather than buying it. Leasing, which is tax efficient, usually has an option to purchase at the end of the period of use. Be careful though of the penalties if you break the contract before the end. The lease-back is a variant that allows you to sell your property while continuing to use it against rents.