8 Benefits of Equipment Financing for Your Business
When starting your business, some supplies are more critical than others. Equipment to run your business is costly, especially since you usually need it all at once. When you can’t afford to use all your money on machinery, check out equipment financing. Look into these eight reasons why this practice may work for you.
- Keep Your Cash Now
Financing your equipment means not tying up your cash flow. If you purchase the same machinery outright, there’s a chance it would deplete your available money, leaving you strapped in other areas.
- Lower Monthly Payments
Many equipment financing companies offer low rates and favorable repayment plan to fit your business’ cash flow highs. Having the ability to choose how much and when to pay monthly may make all the difference in your bottom line.
- Keep the Best in Tech
Leasing machinery is no different than leasing a vehicle. At the end of the lease term, you either turn it in or purchase it. Often you may jump right back into another lease, but it will be a newer model. Thus, leasing gives you a chance to have the most current offerings.
- Get More for Your Money
You probably need more than just one or two items. If you are trying to stock a warehouse or an office, the more you lease, the better off the price may be. Bundling parts and services is an excellent way to stretch your money.
- Finance the Full Amount
Why put down money if you don’t have to? Companies that offer equipment leasing may also offer a 0 percent down incentive, even if you have never used their services before.
- Let Your Equipment Pay for Itself
Using the items immediately will start putting money in your pocket. Put the new equipment to work to pay for themselves.
- Let Someone Else Handle the Details
The finance company will also handle the logistics. They will arrange for pick up and drop off of the product, and they may also be able to arrange for routine maintenance and inspections.
- Avoid Increasing Rates
Locking in an interest rate and monthly price keeps you from getting hit with the negative impacts of inflation. Something you are paying $2,000 a month for this year may wind up going up to $2,250 a month next year. Securing a solid contract to prevent this is critical.
Equipment leasing is just one resource available to small businesses. It helps keep costs down and production high. Securing a little help on the front end can help you save money and reduce stress throughout.