Is Financing the Right Move?
Yes. Finding the right financing to grow by making expensive equipment affordable. Read on about why this could be the right move for your business goals.
Most small businesses need equipment to operate and grow. The Equipment Leasing and Finance Association highlighted key reasons to rely on leasing and financing to acquire equipment and which strategy is the right one. According to the ELFA, eight in 10 U.S. businesses lease or finance their equipment, taking advantage of a range of benefits.
“The $900 billion equipment leasing and financing industry helps all types and sizes of commercial businesses acquire the equipment they need to conduct their business operations,” Ralph Petta, president and CEO of the ELFA, said. “For small businesses in particular, which may not have access to as many funding sources, equipment leasing and financing offer flexible, budget-friendly options that can help with cash flow and keep equipment up to date. We’re pleased to share some of the many reasons equipment finance will help ‘equip your business for success.’”
Equipment financing is on the rise, even during rate increasing times. As businesses ramp up operations to meet a growing economy, here are five key benefits to equipment financing:
- Get 100% financing with no down payment: Unlike with most traditional lenders, it is possible to arrange 100% financing of equipment with no down payment. This allows businesses to hold on to cash, or working capital, and use it for other areas, such as expansion, improvements, marketing and/or research and development.
- Eliminate the risk of ownership: Use equipment financing to lessen the uncertainty of investing in a capital asset until it achieves a desired return, increases efficiency, saves costs and/or meets other business objectives.
- Keep up to date with new technology: To be on the cutting edge and competitive, businesses often need access to new technology. Leases, loans and other financing arrangements enable small businesses to acquire more and better equipment than they could have without financing.
- Plan expenses for cash flow and business cycle fluctuations: Financing equipment allows for greater certainty in budgeting by setting customized rent payments to match cash flow, even seasonally.
- Obtain the convenience of product and service bundling: Certain financial products allow businesses to finance the entire cost of equipment, including installation, upfront maintenance, training and software charges, thereby packaging systems and ancillary products and services into a single solution. This makes equipment acquisition easy to manage and frees up businesses to focus on core operations.
As a nonconventional lender, we don’t take a one-size-fits-all approach, we start by looking at your options and evaluate your needs. Make the right move with the right options to expand and grow your operations.View All News & Views