Many business owners want to modernize their equipment in order to keep up with the competition. However, most businesses won’t be able to outright purchase the equipment they need, because they don’t have enough funds in reserve 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 a company emergency. It will financially impair your business if you purchase the equipment in cash, even in the event of a need for an upgrade. Equipment financing is a great opportunity to avoid sacrificing your business’ cash reserves, as well as the opportunity to increase sales and improve 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 smoothly in the business, especially when some of your receivables are delayed. During these times it’s imperative you have the cash on hand to meet this state of affairs.
3. You won’t have to sacrifice quality
Having a limited budget, also limits you from getting the equipment that’s just right for your business. Having the equipment you want financed will help you get the equipment your business needs without draining your budget. 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 operating smoothly. This will go a long way and provide you with the flexibility to grow your 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 that involve machinery.
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 would normally otherwise pay. You can talk to an accounting professional and ask for advice regarding this matter and too help you understand how it works. Do not miss this opportunity to save money!
If you want more details regarding used equipment financing, contact the experts at SMB Compass. We help small business like yours; get the funding and advice you deserve and need. We offer a variety of attractive equipment financing programs with competitive rates and agreeable terms for our clients.
Remember, time is money and money is time.
Give us your time and we’ll help you get the money!
You simply give us a call today at (646) 569-9496 or email firstname.lastname@example.org