Every business utilizes some kind of equipment. As a matter of fact, you cannot run a successful business without getting the necessary equipment first. Equipment Financing allows businesses to increase revenue and reduce expenses.
In this article we discuss 10 benefits of Businesses Financing Equipment
#1 Head Start on Productivity
For one thing, financing equipment is a good idea as it offers immediate access to cash so that you can get your business running. Depending on the lender you choose, you might get a convenient deal and you might not need to provide a down payment. Sometimes you can even do a deferred payment program. Allowing you to start making money off the equipment before any of your payments commence.
#2 Conserve Cash
It’s no secret that running a business implies a lot of expenses. Some of these expenses have to be paid on a regular basis. Hence, as opposed to saving money for an extended period for buying equipment, you can save cash for necessary expenses or emergencies.
#3 Take Advantage of State of the Art Technology
Technology is quickly changing, and most pieces of equipment can become obsolete right away – regardless of industry. Therefore, by getting financing to purchase equipment, you have the opportunity of choosing the latest technology for your business. Essentially, this will contribute to your firm’s long-term growth. Equipment Financing gives businesses more buying power and the ability to purchase the newest most advanced equipment for their business.
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#4 Customized Terms & Structures
Equipment Financing gives businesses the flexibility to customize your loan terms, by factoring in your individual specifications. Therefore, you can do this depending on your seasonal income fluctuations and your cash flow particularities. Seasonal payments are a great option for businesses that have a slow season. Adjusting your payments based on your cash flow allow you to run your business more smoothly. Seasonal Payments allow businesses to have a lower payment in their slow season so that cash flow is easier to manage.
#5 Avoid Inflation
Moving on, financing equipment could help you to battle inflation. That’s because, upon signing the lease, you lock in the loan rates.
#6 Take advantage of Bundling Solutions
Furthermore, another major benefit is that you can accumulate the equipment, maintenance, and installation into a single financing solution. In terms of management, this can be really convenient. For example, let’s say you have several different pieces of equipment from several vendors. You can finance everything under one schedule so that you are able to have one payment for all the equipment.
#7 Maximize ROI
Instead of having to pay a significant sum of money to purchase the equipment needed for your business, instead, you’ll make monthly payments. Meanwhile, your equipment will generate revenue and/or reduce expenses.
#8 Redistribute Asset Management
Another unique advantage could be that you can let the equipment financing company manage your equipment – starting from delivery to disposal.
#9 Build Business Credit
If you make timely repayments on your loan, this will contribute to building your credit. Hence, in the near future, when your firm will require financing, you will benefit from better terms and options. Building business credit is essential for businesses that are looking to obtain capital as their business grows. To learn more about building business credit check out our article “How to Build Business Credit for the Lowest cost of Capital”
#10 Stay on top of Industry Demands
For any business, inventory represents a major expense. Therefore, considering that you’ll have to make regular payments for your equipment, you’ll have the financial means of purchasing inventory when needed. This way, you can ensure that the cash flow is just right. Also, equipment financing usually has better terms and options than working capital loans. If you do not finance your equipment and later, you need working capital for inventory the terms may not be as desirable.
To conclude, there are a lot of benefits of equipment financing. This allows you to stay ahead of your competition when it comes to new technology and also helps your business with its cash flow position.Equipment FinancingExpand
- Terms up to 84 Months
- New & Used Equipment Financing
- Start-Up Equipment Financing Programs
- Challenged Credit Programs
- App Only Programs up to $250,000
- Private Party & Auction Financing Program
- Used No Age Restriction Program
- Seasonal Payment Programs
- Deferred Payment Programs
- Master Schedules Available – Wrap in several pieces of equipment to one payment
- Soft Cost Financing
- Commercial Programs up to $4,000,000
- Once Approved, Draw down anytime for same-day cash in your bank account
- Draw up to the max credit line whenever you need to.
- Monthly or Weekly Payments not daily
Financing Programs Secured by Collateral
- All Industries
- No Minimum FICO Requirement
- Startups, Expansions and Business Acquisitions
- Equipment Financing and Working Capital
- Must have 2x collateral position
- No Minimum FICO
- All Business Types
- Fast Approvals
- Quick Turnaround
Stop waiting 30, 60, and even up to 90 days for your customers to pay their invoices. By invoice Factoring you can get paid on your invoices in as little as 24 hours.
- Keep Your Cash Flow Operating Efficiently
- Jump Start New Businesses
Flexible Program allowing you to refinance an asset.
- Refinance Asset Currently Financed through another lender
- Pull Equity from an unencumbered asset
- Purchase Asset Currently Leased – Sale Leaseback
- 100% Software Financing Programs Available
- Renewal, Subscription and Cloud Based Financing
- Server and Data Storage Financing Available
- Telecommunications Financing
- Voice and Data Communications
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