Capex vs Opex Finance
Understanding the difference between Capex v Opex will assist you in determining if Capex finance is the right solution for your business and what type of finance agreement will be the most suitable. Below we explain the difference between Capex and Opex and the finance products we offer to help you determine what solution is right for your organisation.
CompNow provides customised procurement, deployment & support services for Education, Government and Business. We are 100% Australian owned & operated, have been in operation for over 30 years and have over 150 technically certified staff. Here is the difference between Capex and Opex and how we can help with Capex finance.
What Is Capex vs Opex?
Capex stands for Capital Expenditures which are major, long term expenses. Capital expenditures need to benefit a company for longer than a tax year. Capital expenditures are physical assets such as:
- Equipment e.g. computers and machinery
Opex stands for Operational Expenditures which are short term, day to day expenses that a business needs to be able to operate such as salaries, rent, business travel, utilities and interest paid on debt.
Capex finance is often used for organisations that want to increase their capital investments or are expanding their business but need Capex finance to fund it or don’t want to tie up existing funds. Expenses incurred from Capex finance can be claimed as an operational expense (Opex).
We offer four finance products that we tailor to suit each client. Our finance products include:
- Master Rental Agreements
- Finance Leasing
- Loan Agreements
- Device as a Service
If you are looking for a Capex finance solution, we will work with you to determine what product will be best suited to your needs. We also have a webinar that provides insight into the differences between our financing options and the benefits of each.