Benefits of Equipment Financing
Your equipment and machines play an important role in the success of your business. As technology advances, your items can easily become dated and less efficient. Equipment financing can offer your company many advantages and assist you in obtaining the cutting-edge accessories and implements you need.
Fast and Convenient Funding
Traditional lending can be a time-consuming endeavor. In most cases, when you lease or finance equipment, the transaction can be handled quickly, allowing you to continue operating efficiently instead of getting tied up in a lengthy qualification process.
Flexible Payment Options
Equipment leases can ease your budgeting process by allowing you some flexibility in your payments. Many financing companies will customize your payment schedule to match the nature of your cash flow.
Attractive Interest Rates
Bank loans and other types of lending can come with a hefty interest rate. As you explore your options for financing or leasing equipment, you will likely find that many companies provide very affordable rates.
Often, you can finance the full amount of your equipment, and your package can even include installation, delivery and other charges. In many cases, no down payment is required, leaving your cash in-house, where you need it most.
Protect Your Working Capital
As your business grows, you need cash on hand to cover the costs of operation, expansion opportunities and unexpected expenses. Having to purchase equipment outright could mean that you exhaust your available funds, or that you may not be able to afford what you need at all. Financing your equipment can preserve your working capital and keep your company running smoothly.
Preserve Other Financing
Another advantage of equipment financing is that you won’t need to utilize your other available sources of funding. You can leave your business line of credit or other loans intact, meaning that those options are still open to you for other financial needs.
Many equipment leases are tax oriented and can be structured in a way that lowers your burden at tax time. This can save you even more money and offer you affordable payments.
Maintain a Competitive Edge
As your business grows, you will need the highest quality equipment available to stay ahead of your competition. Financing programs can grant you access to the latest and greatest items for your operation. Some companies will even build options for replacements or upgrades into your contract terms.
The prices of new machinery can be overwhelming, but equipment financing can ease the burden and help you obtain the essential items you need to ensure the success of your business.