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As the end of the financial year (EOFY) approaches, it’s crucial for businesses to review their financial situation and consider opportunities to improve their tax position. One strategy that many businesses are turning to is asset finance, which can offer a range of benefits including tax deductions and increased cash flow.

Asset finance is a type of loan that businesses can use to purchase or upgrade equipment, machinery, or vehicles necessary to operate their business. Rather than paying for these assets upfront, businesses can spread the cost over time, which can help manage cash flow and free up capital for other investments.

One of the key advantages of asset finance is that it can offer tax benefits to businesses. Under the Australian Taxation Office’s (ATO) rules, businesses can claim deductions on the interest paid on asset finance loans, as well as on the depreciation of the asset itself. This can help reduce the overall tax liability for the business and improve their cash flow position.

In addition to the tax benefits, asset finance can also offer businesses the flexibility they need to keep up with changing market conditions. By upgrading or replacing outdated equipment, businesses can stay competitive and meet the demands of their customers, while also improving their efficiency and productivity.

If you’re considering asset finance for your business, it’s essential to work with a reputable lender who can offer competitive rates and flexible terms. Look for a lender who understands your industry and can provide tailored solutions to meet your specific needs.

Overall, preparing for the EOFY with asset finance can be a smart move for businesses looking to improve their financial position. By taking advantage of the tax benefits and increased cash flow, businesses can position themselves for growth and success in the year ahead.

If you’re interested in learning more about how asset finance can benefit your business this EOFY, contact Grow Capital today.