Amortisation is a process that helps you spread out payments over time. It’s used to reduce the financial burden of large, one-off payments and can make it easier for companies to manage their cash flow. Amortisation works by dividing up a lump sum into smaller, periodic payments so that businesses can pay the cost off in an orderly manner. This method of repaying debt helps to ensure consistency and stability in cash flow, making budgeting simpler and more straightforward. Plus, with amortisation, you can take advantage of lower average interest rates since you’re paying off your loan in smaller installments. Whether you’re purchasing new equipment, investing in property, or taking out a loan, amortisation is an invaluable tool for business owners.