Buying a drone? Here’s why you should use finance

Drones may be seen as a recreational purchase, but for many industries – farming, construction, and media, to name a few – they’re actually a business investment. And as with other business investments, financing is available. Drone finance is a growing sector, with many business lenders offering loan products aimed directly at drones and other new technology. Although asset finance options of all kinds can be applied, many drone operators are finding leases to be their best bet, for several reasons.

Reducing the risk of obsolescence

Purchasing new technology like drones for your business is risky – it could give you an edge over your competitors, but rapidly-changing technology could also quickly make your equipment obsolete, leaving you saddled with an expensive drone that can’t compete with other, newer models. Leasing is one way to mitigate this risk. Many leases come with options that allow businesses to replace or update equipment that has become outdated even before the lease terms have ended. Provisions like this are often included in lease contracts today, especially when the finance provider specialises new technology like drones – so you don’t have to worry about making an expensive investment that won’t pay off.

Spreading the cost

Drones are expensive pieces of equipment to pay for outright. Unlike larger machinery, it’s often possible to purchase a drone in a lump sum, but usually a bad idea. Why? It can seriously constrain your cashflow, leaving you unable to pay for your business’ day-to-day expenses. Leases consist of a deposit followed by a series of monthly payments (plus interest), allowing you to spread the cost without tying up your working capital.

Read our Finance Guide on leases here

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