"Your business doesn't need to own the equipment, it just needs to use it!"
Equipment financing can be one of the most powerful options available to a business owner. It enables you to acquire the equipment you need, without the large capitol expenditure of purchasing. This leaves your liquid capitol available for supply orders, staffing, rent, etc. It also enables you to get the exact equipment needed rather than having to settle for a less productive model due to cash flow limitations.
Upgrading your purchased equipment can be expensive and often wasteful. The cost of continually buying new equipment to meet changing and growing business needs can be difficult for most small businesses. For this reason financing is very advantageous.
- Financing Conserves Cash
Lease your equipment and you can use your working capital to meet payroll, Pay suppliers and keep your business running.
- Extra Cash can generate profit
You can use your cash to invest in more inventory, marketing and advertising that will generate more profit for you and depending on you profit margin can earn you much more money than the cost of financing.
- Pay as you go, not up front
Match the term of your financing to the life expectancy of the equipment and you conserve your up-front cash. When the equipment’s useful life expires, so will your payments. If you are a consumer you further save cash by not paying an additional 15% of taxes with your cash or credit card sale. You pay your taxes with every monthly payment.
- Separate your short term operating bank line and your fixed asset financing
Working capital from your bank line is perfect for running your day to day operations, but not for funding long term assets. By using your bank line to finance asset purchases today, you limit the long term growth of your business by tying up your line of credit with asset purchases that bring income over time and not in the short term. With 100% financing, you can free up your working capital for operating expenses.
- Financing gives you more flexibility
Technology changes quickly…. With a lease, you do not get locked into outdated equipment. When the financing term is up, you can return the old equipment, buy it, or upgrade for new and better equipment that brings profits to your business.