The Benefits of Equipment Financing
Financing your equipment is an excellent opportunity to use the costly equipment you need without significant investment or risk. Choosing the right equipment for your small business can be difficult, particularly if you need a range of costly machinery to effectively provide your services. Discover how equipment financing can help you grow your business successfully with limited upfront risk or investment.
There are two basic options when it comes to financing your equipment: leasing and traditional financing. Leasing equipment allows you to pay a set monthly rate to use the equipment you need, and the machinery is returned to your lender at the end of the lease term. Leasing is a competitive strategy if you only need to borrow a certain piece for a short period, or if you will need to upgrade to a newer model soon after purchasing it.
Traditional equipment financing offers the same easy monthly payments, but you’ll own the equipment at the end of the lease. Most financing options require no money down and have monthly payments low enough for a small business to affordably receive the equipment it needs.
Equipment Financing Benefits
Both financing and leasing your equipment comes with many benefits. First, your small business can avoid the risk of a major upfront payment. The substantial cost of construction equipment, computer technology, and other equipment means that few businesses can afford these major expenses without using some form of financing. A lease or specialized financing for equipment may have lower monthly payments or more generous terms.
These options aren’t just for small businesses. Many mid-sized or larger businesses who are looking to expand their services take advantage of the flexibility of leases and other financing options. Keeping your working capital free for other use is a safe way to grow any size of the business while minimizing risk.
Because you have a fixed monthly payment, it’s much easier to budget for operating your equipment. You also save your valuable cash for operating costs and other investments. It can be very difficult to grow your business when all your working capital is tied up in equipment.
Choose the best equipment financing package for your needs. Whether you opt for a lease or traditional financing option, you can enjoy a streamlined startup or expansion for your small business. Don’t let a major expense keep your business from providing industry-leading services for all your customers.