Accidental Life Cover

How Income Protection Insurance Can Safeguard Your Lifestyle During Illness or Injury

Research commissioned by TAL in 2019 indicates that only approximately half of all Australians have some form of life insurance policy, with many remaining under-insured. As per the ATO, while the number of active life insurance policies is twice the number of working-aged Australians, this does not signify that most Australians have adequate insurance coverage. In fact, despite the significance of active policies, only about 52% of Australians hold some form of life insurance.

If you are considering the importance of income protection insurance, consider this scenario: You unexpectedly injure your back and require time to recover. Without income protection insurance, you are left without a paycheck during your recovery. Bills begin to pile up, and your savings rapidly deplete. Suddenly, you are juggling both health and financial stress. Income protection could have helped maintain financial stability while you focused on recuperating.

What Does Income Protection Insurance Cover?

Sometimes called a salary continuance insurance, income protection insurance is designed to provide you with a stream of continuance income if you can’t work for an extended period of time due an unexpected illness or injury.

Income protection insurance commonly provides a monthly benefit, a predetermined percentage of your pre-tax income, to assist with essential living costs while you recover. Depending on the specific policy, income protection policies can offer up to 70% of your pre-tax income during your claim.

Each policy has its own definition of partial or total disability that must be met before a claim can be submitted. It is important to review your insurer's website or product disclosure statement (PDS) before committing to an income protection policy to guarantee that you obtain the desired coverage. Do not hesitate to consult with an insurance broker to explore the available options before making an investment.

What Is Excluded from Income Protection Insurance?

Depending on the type of policy you undertake, exclusions vary. However, some common exclusions include:

  • Self-inflicted injuries
  • Attempted suicide
  • Drug usage
  • Participation in illegal activities
  • Pregnancy

However, these exclusions differ among providers. Some policies may have a narrower definition of exclusions, while others may be more extensive. It is always important to review the complete details of your policy before making an investment or filing a claim.

Contemplating if You Need Income Protection Insurance?

If you are self-employed, have dependents, or have debt, investing in an income protection insurance policy is a prudent choice.

Your insurer will typically require details such as your age, occupation, current income, medical history, lifestyle habits, and participation in high-risk hobbies to determine (a) their willingness to insure you, (b) the cost of your premiums, and (c) specific terms and conditions attached to your policy.

Generally, an indemnity policy will apply for new contracts after November 2021 as follows:

  • An indemnity value policy, which insures you for a percentage of your salary at the time you make a claim. If your salary has decreased when you make the claim, you will receive a smaller monthly insurance payout.

Additionally, there is the option of choosing between stepped or level premiums.

  • Stepped premiums are calculated based on your age. The cost of coverage is lower if you sign up when you are younger and increases as you age.
  • Level premiums tend to be higher at the beginning of the policy, but changes to the cost are not based on your age, so changes are less significant over time.

It is important to consider your options carefully before making a decision. Making an incorrect decision or providing misleading information can impact your coverage.

Injured or Unwell? Income Protection Keeps You Covered

If unforeseen circumstances necessitate financial protection, regular benefit payments can alleviate some of the burden during your recovery. Additional benefits and considerations for investing in an income protection insurance policy include:

  • Most policies offer a rehabilitation benefit (outside of super), collaborating with your medical practitioner to ensure you receive the optimal treatment.
  • Most policies offer a recurrent disability benefit, eliminating the need for subsequent waiting periods.
  • Some policies offer a death benefit, payable to your beneficiary in the event of your untimely demise while your policy remains active.
  • Tax deductibility, enabling you to claim them during your tax return period.

Should you require dependable income protection insurance, consider collaborating with one of our specialist brokers at Morgan Insurance Brokers to select a plan tailored to your requirements.

Be prepared for unforeseen events. Contact us today.

by Mojo Dojo

Insurance Broker

Benefits of Income Protection Insurance for Self-Employed Individuals

As a self-employed individual, you make up your entire business. You are the source of your livelihood. But have you ever wondered what would happen if you were to suddenly fall ill or get injured, impacting your ability to work? What would happen to your income? Or worse, your lifelihood?

Well, that’s where income protection insurance policies come into play. They’re designed to replace up to 70% of your pre-tax income during periods you’re unable to work, enabling you to prioritize your rehabilitation.

In contrast to salaried employees who have access to a range of worker's compensation benefits, investing in income protection insurance is the optimal method for self-employed individuals like yourself to safeguard your financial stability.

What are Your Options for Income Protection Insurance?

The good news is, as a sole trader income protection insurance is available to you. However, there are a few criteria that need to be met and key factors that need to be considered before obtaining income protection coverage.

  • Regarding eligibility requirements, certain conditions may apply, such as a minimum period of self-employment and/or a minimum number of weekly working hours to be classified as self-employed for an income protection policy.
  • Most policies offer coverage for up to 70% of pre-tax income plus super guarantee for a specified period. It is crucial to note that income protection insurance solely covers the loss of personal income, not the income of the business.
  • The insurer may require proof of earnings through tax returns or bank statements. If income varies, the average may be calculated instead.
  • Currently all new income protection policies are offered as indemnity value policies. Therefore, income is calculated when the claim is made, not when the policy is initiated.
  • The benefit period is variable and can range from a year, to a couple of years, or even to age 65 years for qualifying occupations.
  • Waiting periods can range between 30 days to 2-years. It is important to ensure adequate savings are available to cover expenses while waiting for benefit payments to commence.
  • Generally, premiums are tax-deductible; however, benefit payments are considered taxable income.
  • Occupation, age, medical history, and lifestyle habits determine the cost of premiums.
  • Most policies offer optional benefits, including rehabilitation benefits (outside super).

It is crucial to review and evaluate different income protection insurance policies before making a decision. Be sure to understand your product disclosure statement (PDS) or consult with an insurance broker to determine what’s available to you and to decide the best policy for your personal circumstances.

What are the Benefits of Income Protection Insurance for the Self-Employed?

There are several potential benefits associated with investing in income protection insurance for self-employed individuals who lack access to traditional employee benefits. Core benefits include:

  • Peace of mind knowing that you have a financial safety net. You’ll be able to focus on your recovery without the added worry of financial difficulties.
  • Coverage of everyday expenses as benefit payments can be used to pay for bills, groceries, mortgage payments, and even business-related expenses.
  • Flexibility, with some policies being able to be tailored to your specific needs, such as the waiting period and benefits. For instance, you can opt for a longer waiting period if you have savings that can hold you afloat for a while.
  • No medical tests, meaning you can apply for an income protection insurance policy without needing medical or blood tests.
  • Broad coverage for a range of illnesses and injuries, including both physical and psychological conditions.

Like every other insurance policy out there, it’s something you have in the back of your mind but may not invest in, until it’s too late or impossible to do so. Weigh up these benefits and consider how important it is for you to be well protected when the unexpected comes your way.

Get the Help of an Experienced Insurance Broker

At Morgan Insurance Brokers, we simplify the process of acquiring your next insurance policy. We understand the critical importance for self-employed individuals to have peace of mind and comprehensive coverage in adverse situations. Our team of brokers can assist you in evaluating your options and determining the optimal course of action.

It’s always better to be safe than sorry. Contact us today.

by Mojo Dojo

Income Protection Insurance vs. Life Insurance: What's the Difference?

In essence, income protection insurance provides you with monthly, ongoing benefits for the duration outlined by your policy's waiting and benefit periods. In contrast, life insurance pays your beneficiaries a lump sum benefit in the unfortunate event of your passing or a terminal illness diagnosis.

Lets Compare Income Protection Insurance and Life Insurance

First, let’s break down the intricacies of income protection insurance.

  • It replaces a portion of your income, typically up to 70% due to an unforeseen illness or injury that restricts you from working. However, depending on your insurance policy, some may offer up top up coverage of your pre-tax income for the first couple of months of your benefit period.
  • While income protection insurance provides regular payments while you recuperate, the benefit period can vary, from a couple of months to several years, or even a specified age.
  • Benefit payments can be used to cover essential expenses such as rent, mortgage, utility bills, groceries, car loans, and more over the course of your recovery period.
  • Considered beneficial for those managing debt payments, are self-employed, have dependents, or do not qualify for worker’s compensation benefits.
  • Premiums are tax deductible at your marginal tax rate, as long as they are not paid through your superannuation.
  • Most income protection policies may include rehabilitation support up to 12 times your monthly sum insured.

Now, let’s take a look at the workings of life insurance policies.

  • It provides a lump-sum payment to your beneficiaries if you were to pass away or be diagnosed with a terminal illness.
  • It is designed to offer financial protection to your loved ones in the event of your demise.
  • The payout can be utilised for whatever purpose the beneficiary’s desire.
  • It offers peace of mind to your loved ones knowing that they are financially protected if the worst were to happen.
  • Policies may also include additional cover options such as Total and Permanent Disability (TPD) cover, critical illness, as well as child cover.

Here’s a table summarising the key differences:

Features Income Protection Insurance Life insurance
Coverage Loss of income due to injury or illness In the event of your death or terminal illness
Payments Regular monthly payments A lump sum payment to a beneficiary
Purpose Covers ongoing lifestyle expenses whilst you’re unable to work Provides financial security and peace of mind to your beneficiaries
Benefit Period A specified period determined when the policy is purchased Paid out upon death or terminal illness diagnosis
More Benefits May include additional benefits such as death or rehabilitation benefits May include TPD, critical illness, and child cover

Do You Need Both Income Protection and Life Insurance Policies?

Deciding whether you need either policy or both depends on your individual circumstances and the needs of your family and/or dependents. However, one thing to remember is that most if not all Australian superannuation policies offer insurance products as part of their packages – however this may not be an underwritten policy which may result in a more lengthy or difficult claim process. In any case, external Life insurance policies can be paid from your existing superannuation policy also.

Income protection can sometimes be purchased through your super fund, often at a reduced price. However, premiums paid via superannuation are not tax deductible in your personal name, unlike those for a policy purchased outright. Likewise, policies offered directly via your super fund provider may also have limitations. You should consider if you need additional coverage for yourself and your family.

Both types of insurance have different purposes and may not be valuable to you. To decide if income protection insurance is right for you, start by creating a budget of your needs and essential expenses. For life insurance, consider specific risks related to your health or career, particularly if you have a high-risk job. Determine if your beneficiaries, such as your children or spouse, could cover their living costs in the event of your death.

Most importantly, always remember to check your product disclosure statement (PDS) before investing in either a life or income protection insurance policy. If you require assistance, seek the help of an experienced broker to guide you through available options.

Access the Right Coverage with Morgan Insurance Brokers

Contemplating whether life or income protection insurance is suitable for you? Don’t know whether you require both or neither?

Consider reaching out to our team of experienced insurance brokers to help you decide on the best course of action. We’ll help you compare policies, ultimately helping you decide on the best insurance policy for your needs.

A small investment today can save you from a large loss. Contact us today.

by Mojo Dojo

Is Commercial Asset Finance Right for Your Business? Key Considerations

Is Commercial Asset Finance Right for Your Business? Key Considerations

A key question many businesses ask themselves when acquiring new assets is whether to purchase them outright or through a hire purchase agreement. Commercial asset-based finance can be a reliable solution for businesses facing cash flow issues. 

It utilises a business’s assets as collateral for a loan, with the amount financed potentially reaching up to 100% of the asset’s market value. Such financing can be secured by real estate or other assets such as machinery, equipment, and vehicles.

There are two common types of commercial asset-based financing: 

First, invoice financing allows businesses to access working capital tied up in unpaid invoices by utilizing the accounts receivable ledger as collateral. This enables cash flow to be brought forward, allowing the business to receive the invoice amount when it is issued rather than waiting for payment from the customer.

Second, equipment finance is for businesses that need to purchase equipment, such as machinery or technological infrastructure. This type of financing is self-securing, which means that the equipment purchased acts as collateral for the loan. If the borrower defaults, the lender has the right to repossess the equipment. Common types of equipment financing include hire purchase, an operating lease, and finance lease. 

In essence, both types of asset-based financing utilise a business’s available assets but work in different ways. More often than not, they’re utilised complementarily, as businesses tailor their financing to multiple needs. 

What type of businesses benefit most from commercial asset-based finance? 

Commercial asset-based financing can benefit a variety of businesses, depending on specific needs. Most prominently, businesses that may benefit most include: 

  • Asset-heavy businesses. These are businesses that rely on fixed assets like vehicles, machinery, and other equipment to generate sales. Typically, these entail businesses in construction, manufacturing, and healthcare, which require expensive equipment to operate. This allows them to acquire the necessary tools and equipment without large upfront investments. 
  • Service-based businesses. These are businesses that are less reliant on fixed assets. Invoice financing allows these businesses to access the working capital tied up in their unpaid invoices. Hence, it’s best for businesses with strong customers and a high volume of outstanding invoices that need quick access to cash.
  • Alternatively, many businesses, especially those that operate in multiple sectors or have both physical assets and accounts receivable can benefit from using both types of asset-based finance to support different parts of their operations. 

Equipment financing helps with acquiring or upgrading equipment, while invoice financing boosts cash flow by accessing funds tied up in unpaid invoices. This combination provides flexibility in managing different financial needs across various areas of the business.

Is commercial asset finance right for my business? 

Key considerations to help you decide if commercial asset-based finance is right for your business: 

  • If your business is experiencing cash flow issues or you require access to working capital immediately, commercial asset-based finance can be a reliable solution. 
  • If your business currently owns assets that can be used as collateral, then commercial asset-based finance can be an option. 
  • If your business is keen on growth, then commercial asset-based finance is a scalable solution to fund your growth sustainably. 
  • If your business is struggling to meet the eligibility requirements set out by banks and various financial institutions, commercial asset-based finance is a good alternative. The application process is less strenuous and time-consuming. 
  • If cost is a factor, then commercial asset-based loans are a cheaper alternative compared to conventional business loans. 

The best way to go forth is to then determine the specific type of asset based finance required. Then, find the right lender with the financing arrangement that best suits your operational needs. 

How can a finance broker help? 

Navigating the complexities involved in accessing commercial asset-based financing can be challenging without the right assistance. Consider enlisting the help of finance brokers to help source the most appropriate asset financing options. 

Finance brokers have immense knowledge surrounding various financial products and services, and guide you towards partnering with a provider that meets the unique needs of your business. More often than not, brokers are able to help you secure a better rate and term than you would be able to source on your own, largely due their industry connections. 

If you’re a business looking to leverage the power of commercial asset finance to sustainably grow your business, consider reaching out to our team of experienced brokers at Morgan Insurance Brokers. We’ll strive to help you meet your business goals through strategic commercial asset financing. 

by arun

How to Use Asset Finance to Boost Your Business Growth

How to Use Asset Finance to Boost Your Business Growth ?

When starting a business, one might find that there are limited options for funding or borrowing money, largely due to a limited credit history. However, after the initial years of operation, your business may have reached a stage where it’s ready to propel its growth.

One beneficial way to do this is by using asset-based financing as part of a larger business strategy. Instead of investing a large sum of money upfront to acquire necessary equipment and machinery, businesses can spread the cost over time with small, regular payments. This, in turn, enables businesses to preserve working capital while allocating funds to other core areas of growth. Similarly, with existing assets, one can opt to refinance them, further elevating their existing value.

This can be especially beneficial for startups by allowing them to gain access to vital equipment with manageable monthly payments. Essentially, by strategically employing asset finance, businesses can not only improve their cash flow but also promote long-term growth. Whether new or established, asset finance is a valuable tool for businesses to consider.

What is Asset Finance? 

Asset finance is a relatively straightforward funding alternative that allows businesses to acquire essential assets without a large, upfront investment. At the same time, it allows businesses to start utilizing those assets while still paying for them. Businesses also have the option to refinance existing assets.

A variety of assets can be obtained through asset finance, including vehicles, machinery, technological infrastructure, furniture, and hardware. These assets tend to be tangible items that assist and improve a business’s performance.

Essentially, asset finance provides access to high-quality equipment that may not be affordable to purchase outright. This then allows businesses to expand their operations without putting a strain on their working capital. They will have the opportunity to raise finance simply through their existing assets.

Types of Asset Finance

There are a range of asset finance options, each with different terms and benefits.  

  • A hire purchase enables businesses to own the asset at the end of their term. However, till then the finance provider retains ownership of the asset. 
  • A finance lease enables a finance provider to purchase the asset and then lease it to the business. The business makes monthly payments, and at the end of the lease can either choose to extend the lease, return the asset, or sell it on behalf of the provider. 
  • An operating lease is suitable for businesses that require an asset only for a specific period of time. The provider retains ownership of the asset but the business has the option to upgrade to newer models throughout the leasing period. 
  • A contract hire is specifically designed for vehicle-related leasing. The provider manages the sourcing and maintenance of the vehicles, while businesses make regular payments for usage of the vehicle over the specified lease term. 
  • A sale and leaseback involves businesses selling an existing asset to a finance provider, and leasing it back. This enables the business to free up capital whilst retaining usage of the asset. 

How to Make the Most of Asset Finance?

  • First, start by acquiring the essential assets you require, whether it’s vehicles, machinery, office furniture, and more.
  • Next, strive to improve your cash flow by spreading the cost of your assets over time. This is especially important to maintain liquidity and ensure that your business can meet its current operational expenses.
  • Third, consider asset refinancing. This enables you to unlock the value locked inside your existing assets. Gain the ability to release a lump sum of cash without interrupting your right to use your assets.
  • Fourth, make sure your asset finance agreement enables you to access the latest equipment available in the market.
  • Fifth, determine the tax benefits you may gain from asset financing. Some forms of asset finance can be fully deducted as a business expense, hence reducing your taxable income.
  • Sixth, make sure to plan and budget confidently. The fixed repayment schedule often associated with asset finance makes budgeting easier and more efficient.
  • Last but not least, use a broker. Experienced brokers can simplify the whole asset financing process for you. They’ll help you gain access to better deals and ensure you receive expert guidance throughout your partnership. Brokers typically have relationships with multiple lenders, hence the ability to sift through multiple options to find a financial provider that best suits your needs.

Need an experienced broker to help you leverage the power of asset finance? Contact Morgan Insurance Brokers today!

by arun

The Importance of Insurance When Financing Business Assets

The Importance of Insurance When Financing Business Assets

At present, businesses nationwide face various risks to their assets that can be mitigated with the right insurance policy. These risks can stem from losses associated with natural disasters, theft, cyber-attacks, machinery breakdowns, and more. 

Having a reliable asset insurance policy can provide businesses with a vital tool to protect both their tangible and intangible possessions. Without appropriate insurance, businesses would have to bear the entire cost of replacing or repairing their assets in the event of the unexpected. 

Likewise, asset insurance is a requirement for many lenders before they will provide a loan. This is to protect the loan if the borrower defaults. Therefore, it not only safeguards the business's well-being but also improves their credibility. 

Types of Asset Insurance 

The following are some of the most common insurance options for businesses: 

  • Property insurance, which covers damage or loss to buildings and other physical assets due to events like natural disasters, fire, and theft. 
  • Building and contents insurance is a similar type of insurance to property insurance that covers damage or loss from events including fire, storms or break-ins.
  • Equipment insurance, which covers damage or loss to equipment used for business operations. 
  • Commercial vehicle insurance, which covers damage or loss to vehicles used for business purposes.
  • Business interruption insurance, which covers lost revenue and operating expenses due to a disruption in operations caused by an unexpected event.
  • Cyber liability insurance, which covers losses or damages caused by cyber-attacks and other cyber threats.
  • Key person insurance, which covers loss of revenue or profits due to the death, illness, or disability of a key employee.
  • Deterioration of stock insurance, which covers lost stock in cold storage after a fridge or freezer breaks down.
  • Goods in transit insurance, which covers loss or damage to items during transport.
  • Electronic equipment insurance, which covers electronic items from breakdown, loss or damage while at a specific location.
  • Portable equipment insurance, which covers loss, damage or theft of tools and electrical equipment taken on a job.
  • Burglary insurance, which covers losses, damages and associated costs from a break-in or theft.
  • Farm insurance covers crops, livestock, buildings and machinery.

The selection of appropriate asset insurance for your business is crucial and necessitates careful evaluation of your specific requirements and potential risks. Although you might not need every type of insurance listed above, it's likely that you'll need a combination of several.

Steps to Choosing the Right Asset Insurance 

As a business, choosing the right type of asset insurance is a critical decision. Here are some steps that will guide you towards selecting the best asset insurance policy for your business needs. 

  1. Start by conducting a risk assessment to identify potential hazards that may affect your assets. This could include environmental risks such as fires or natural disasters and even safety risks such as thefts and cyber attacks. 
  2. Next, determine the value of your assets. This includes physical assets as well as intangible assets, to ensure you choose an insurance plan with adequate coverage. 
  3. Then, you should undertake comprehensive research into the range of providers and plans to find one that will meet your exact needs. It’s important to consider their experience, reputations, and financial stability so that you can be assured of their reliability on offering the right type of coverage for your business assets. 
  4. Make sure to carefully review the terms and conditions of your policy before signing on to it. This is to ensure that it meets your specific needs, including clearly outlining exclusions, deductibles, and coverage limitations. 
  5. Last but not least, it is advisable to seek the professional advice of insurance brokers to help in navigating the complexities involved. Brokers can provide guidance on the types of coverage that may be appropriate for your specific situation and industry. 

Let Morgan Insurance Brokers Help

If your business is looking to invest in insurance to protect its assets, contact Morgan Insurance Brokers today. Our team can source the ideal insurance policy for your needs. With access to over 150 insurers and underwriting policies, we simplify the process and help you determine the best coverage for your business. 

Get ready to discover the peace of mind that comes with proper asset protection. 

by arun

Top Benefits of Financing Your Business Assets vs. Buying Them Outright

Top Benefits of Financing Your Business Assets vs. Buying Them Outright

While purchasing business assets outright may seem appealing, it's crucial to consider the financial implications for your business. The substantial upfront capital expenditure could negatively impact your business's performance and future growth. Furthermore, tying up a significant amount of capital in assets might lead to missed opportunities for more profitable investments in the near future. 

Hence, this is where financing options like asset finance provide a more flexible and appealing approach towards preserving your working capital whilst still obtaining the required assets. 

Nonetheless. It's important to carefully evaluate all your options in order to make an informed decision about how to best acquire the assets your business needs. 

What is Asset Financing? 

Asset financing is a flexible funding method that enables businesses to acquire new or used assets. It is a highly recognisable source of financing, and is often used for assets that generate revenue when used. Rather than spending a lump sum of money on an asset, financing it allows businesses to spread the cost of the asset over its lifespan. 

There are several types of asset financing options available: 

  • Hire purchase involves the business paying a deposit initially, and then fixed monthly instalments. The asset then becomes the business’s property after the final payment is made. This is an attractive option for businesses who want to invest in heavy and/or expensive machinery. 
  • Finance leases enables businesses to utilise equipment for a fixed period of time whilst also being responsible for maintenance, repairs, and operational costs. This is an appealing option for significant assets like factory plants. 
  • Asset refinancing is a suitable option for businesses who already invested in equipment but are keen on unlocking its hidden value. Here, the lender would buy the equipment and then lease it back to the business over a specified period. 
  • Operating leases are contracts that permit the use of an asset without the need to transfer ownership. This means businesses can avoid the high costs associated with purchasing altogether. 

Benefits of Asset Financing 

If you’re considering asset financing as a viable option for your business, here are several core benefits that might help facilitate your decision. 

  • Asset financing enables your business to preserve cash flow. By avoiding large upfront costs, you can utilise your funds for other essential expenses and investments that can help generate profits. 
  • With asset finance, your business gains access to higher-quality assets that you may not have been able to afford. This in turn can help your business maintain a competitive edge, thus improving your revenue generation. 
  • Asset finance agreements come with flexible repayment plans. These plans can typically be tailored to meet the needs of your specific business, with options available for varying deposit sizes and seasonal payment plans that align with your business’s busiest and quietest periods. 
  • Asset financing payments are often tax deductible. This in turn lowers your business’s taxable income, thus providing further savings. 
  • By avoiding ownership responsibilities, you save business time and money on tasks like decommissioning, packaging, transportation, and re marketing. 
  • Gain access to the latest technology which may be too costly to purchase outright. As a business, regularly replace your older assets with new, updated ones that help you increase your productivity and profitability. 
  • Effectively manage capital and debt through asset financing. Since your capital is not tied up in equipment, you can use it to pursue new opportunities, expand your operations or make strategic acquisitions. Likewise, savings from asset financing can be used to pay off existing debt or secure other core facilities. 
  • Be able to benefit from inflation. With payments made in instalments with fixed rates, inflation works in your favour as the value of money depreciates. This is because you’ve purchased the usage of your assets at a discounted rate. 

Disadvantages of Buying Assets Outright 

Purchasing assets outright can present several drawbacks for businesses, especially small and medium-sized enterprises. 

    • Outright asset purchases require a large initial capital outlay which can strain your businesses ability to finance other essential purchases. 
    • Spending a large amount of money on an asset can reduce your cash flow, hindering your ability to operate optimally. 
    • If your business takes out a loan to fund an asset purchase, it may miss out on potential investment opportunities that could yield higher returns and accumulate additional liabilities such as higher interest rates. 
    • Costs associated with deprecation, maintenance, and upgrades can be substantial, straining overall business finances.

While outright ownership of assets seems appealing, it does come with a lieu of financial challenges. Choosing the most appropriate method to acquiring assets requires a careful evaluation of your business’s current financial situation and long-term goals. 

by arun