To buy, or not to buy, that is the question. As clichéd as it may sound, in order to make the most of your capital, deciding on whether or not to use equipment loans or your money can create a dilemma. In the case of a franchise owner, it’s good to know you have options, as regardless of whether your business is a start-up or in expansion, choosing to buy your franchise equipment over financing equipment can make all the difference. This is where a detailed understanding of franchise equipment loans pay off big time.

Outright purchase

To purchase franchise equipment by paying for it in full up front is an expensive way to fund your growth and will drastically reduce your working capital. It may seem like the cheapest way to acquire the franchise equipment you need, but there are hidden costs associated with buying your equipment outright. Depreciation is the single largest expense of owning your equipment outright, then there is ongoing maintenance and repairs. You may also need to make upgrades and pay for add-ons again reducing your capital. But I think the largest hidden cost is the opportunity foregone by using all of your capital. We regularly hear from franchisees who wish they had of financed their equipment as it would have given them the funds to more quickly buy another franchise, or they could have had more funds for marketing and growing the business.

Equipment Finance

Leasing or renting the equipment required in your franchise, is an affordable and much smarter option – especially during start-up when your cash flow needs to be at their most flexible. Franchise equipment finance preserves your working capital because you pay only a fixed rental (usually weekly or monthly, depending on your chosen payment terms) for the equipment while you use it to earn income. Some funders will also provide flexible options with equipment loans like being able to upgrade your equipment, payout whenever it suits you, or even return franchise equipment that is no longer required in the business.

CFI Finance

CFI Finance, is a specialist franchise equipment finance company and the only equipment-funder focused solely on the Australian franchise industry. CFI Finance can fund just a single piece of equipment through to an entire fit-out for your new franchise. By using CFI Finance you do not take on any asset risk. You have flexible options to pay out the contract whenever you like and purchase the equipment or you could return the equipment if it is not quite right for your franchise without any further obligation. CFI Finance takes the stress out of financing your franchise equipment with a simple online application that only takes about 10 minutes to complete. For more information about CFI Finance franchise equipment finance, visit

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