Why Equipment Financing Is Such a Big Deal
If there were a way to purchase the equipment you need to keep your business operating at top capacity without tying up a lot of upfront cash, you’d probably be all for it. Fortunately, there is such an option and it’s called equipment financing.
These loans typically allow you to finance one hundred percent of the cost. You’ll make payments over time and, in most cases, the value of the equipment is considered the collateral that secures the loan. Here are a few advantages of equipment financing for you and your business.
Keep Up With the Latest and Greatest Equipment
Because you don’t have to put the money up front, equipment financing makes it possible for you to obtain the state-of-the-art tools that would otherwise be out of your reach financially. No need to accumulate a ton of savings or take a risk by dipping into your cash on hand to always have the most effective equipment on hand.
Take Advantage of Flexible Terms
The exact details of your equipment financing loan will vary depending on your personal situation as well as that of the lender you select, but you will likely find more flexibility than with a traditional loan. For example, you may be able to make payments based on a percentage of your monthly sales rather than a fixed amount, which is highly beneficial if your business varies significantly by month or season.
In addition, the application process itself tends to be easier with equipment financing, especially if your credit is good and the type of equipment you’re buying is likely to hold its value over time. Other factors that affect the ease of the process include the overall loan amount and the length of time you’ve been in business.
Enjoy the Tax Benefits of Equipment Financing
In most cases, the interest paid with each financing payment is tax-deductible, which can be used to your advantage. Be sure to consult with a tax professional to ensure you are maximizing this important tax break.
Keeping your business operating smoothly and profitably is at the top of your priority list. Investing in the right equipment is a key piece of your success, so don’t cut back on quality due to financial issues. Equipment financing is a boon for you as a small business owner because it allows you to have the tools you need at a price you can afford to pay over time