Equipment Financing: Why it’s right for you
No matter the size of a business, effectively managing cash flow is crucial for success. By using equipment financing, business owners can procure the right equipment through a financing plans that fits their budget, rather than whatever capital or cash is currently available. This has led many equipment vendors to offer equipment financing to their customers.
Equipment vendors that offer a financing plan allow their customers to obtain the necessary products for the industry or perform upgrades on existing equipment without having to deal with costly down time. Through financing, vendors can offer an allotted period during which businesses can decide whether they will make the final purchase. In addition to the ease of acquiring new equipment, financing also offers several other benefits.
In the current economic climate, purchasing through a financing program means taking advantage of tax incentives. When customers buy through lease-to-purchase options, the amount that is saved on taxes has the potential to be even more than what is paid in the first year of the lease. In other words, businesses can make money from the first day of the lease – an attractive option for vendors to offer customers.
ADVANTAGES OF FINANCING
Every business needs new equipment at some point. Existing equipment gets old and outdated, and additional equipment is often needed to grow a business. Nearly 80% of companies in the U.S. finance their equipment purchases. They recognize that it is more important to have and use the equipment to remain competitive.
There are many advantages to equipment financing. Here are the reasons we feel are most important to your customers:
- Credit Availability
- Conserve Working Capital
- Prevent Equipment Obsolescence
- Tax Advantages
- Budget Friendly
- No Down Payment Required
- Fixed Monthly Payments
- Choose Payments and Terms