Many business owners want to upgrade their equipment to keep up with modernization. However, most businesses won’t be able to purchase the equipment they need, because they don’t have enough funds to do so. Used equipment financing helps businesses purchase the equipment they need without having to pay for it in cash.
This article will walk you through five reasons why it’s better to have the equipment you want financed, rather than buying it in cash or delaying the opportunity to grow your business.
1. Your business needs cash for daily expenses.
Business owners need cash for their daily business expenses. It is important to have liquid capital on hand, in case of immediate repairs or any business emergencies. It will financially impair your business if you purchase the equipment in cash, even if you require an upgrade. Equipment financing is a great opportunity to avoid sacrificing your business’ cash on hand, as well as the opportunity to increase sales and better your service.
2. Your business needs cash during slower seasons.
If your business is machinery and equipment intensive, it is also very capital intensive. You need capital to make sure everything runs normally in the business especially when some of your receivables are delayed. During these times we have seen how important it is to have cash.
3. You won’t have to sacrifice quality.
Having a limited budget, also limits you from getting the equipment that’s right for your business. Having the equipment you want financed will help you get the equipment your business needs without draining your wallet. This is a win-win situation for your company. You get the equipment your business needs, while you also get to keep the cash needed to keep your business running. This will go a long way and provide flexibility to grow the business.
4. Build your credit.
We all know how important it is to have a good credit score; this is especially true if you are a business owner. Financing is relative to the business owner’s and the companies credit score. This means, that if you have a good credit history, your business won’t have any issues financing a large sum of money, if the equipment requires it. Equipment loans are very useful in capital-intensive businesses such as machinery and equipment.
5. You can reduce the amount of taxes you pay.
There are additional benefits to taking an equipment loan. Leasing contracts will allow you to get additional costs deducted from your earnings. This can help you reduce the amount of taxes you normally pay. You can talk to an accounting professional to ask advice regarding the matter to help you understand how it works. Do not miss this opportunity to save money!
If you’re in need or just want to know more about used equipment financing, contact SMB Compass. We help small business like yours; get the funding and advice you rightly deserve. We offer a variety of attractive equipment financing programs with competitive rates and agreeable terms for our clients. Don’t hesitate to give us a call at (646) 569-9496 or email firstname.lastname@example.org