Effective cash flow management is an extremely important element to a successful business – small or large. Equipment financing offers business owners a means to acquire equipment based on an operating budget – not based on capital or cash on hand.
Advantages of financing your equipment
- 100% financing
Unlike some loan programs, you can finance 100% of your equipment
- Asset management
Financing provides the use of equipment for specific periods of time at fixed payments. The financing company assumes and manages the risk of equipment ownership. At the end of the term, if you elect to return the equipment, the financing company is responsible for the disposition of the asset.
- Flexibility
As businesses grow and needs change, you will be able to add or upgrade at any point during the financing term.
- Tax advantages
There are tax incentives for purchasing new equipment: the amount you save in taxes could be greater than what you pay in the first year of a lease. The new equipment could make you money form day one!
Financing logic
| Can you ... |
Financing |
Cash purchase |
Bank loan |
| Acquire equipment without a substantial cash outlay? |
Yes |
No |
No. Most banks require a large down payment. |
| Upgrade or add equipment without difficulty |
Yes |
No |
No. Most banks require re-application for another loan. |
| Match payment to your current cash flow? |
Yes |
No |
No |
| Avoid affecting your bank lines of credit? |
Yes |
No |
No. In fact, you will be affecting it a great deal. |
| Get approval for financing in one day? |
Yes |
No |
No. It could take days or even weeks. |
| Customize your payment plan or even defer payments? |
Yes |
No |
No |