8 Key Benefits of Equipment Financing

If you’re looking to make an equipment purchase, there are a lot of great reasons why you should finance the equipment instead of putting out the cash to make a purchase from your reserve funds. For starters, you can count on equipment financing to allow you to purchase machines you might not have the funding for, the same way you count on commercial real estate loans to buy properties. That’s not the only reason to do it, though.

When you finance equipment, it is possible to arrange to have the financing cover the purchase completely, leaving you with no net down payment. This frees up cash for your business to use in other areas, like research and development or marketing. That versatility with your cash flow means more opportunities to increase your volume of business. The fourth great reason why you might want to finance equipment is closely related to the first three—it allows you to reach a return on your investment more quickly, since your cost of purchase can be quickly dwarfed by the extra income your new equipment lets you make.

Of course, gaining this advantage means planning your new machine purchases very carefully, because you’ll need to be sure you will be able to use the new purchase to generate that income. If you opt for leasing instead of financing through a loan, you can also streamline the equipment acquisition and disposal process by letting your financing company cover both delivery and disposal. This also lets you keep up to date more easily, because you can upgrade your technology whenever lease terms expire. That’s six great reasons to embrace equipment financing so far. Let’s look at the last two, because they are really something.

First, when you finance through a lease structure, you get a hedge against inflation, by locking in your rates for years to come so you don’t have to worry about fluctuating interest. Last but definitely not least, you can also work with a financing company to bundle your equipment leasing deals together, streamlining administrative costs and providing you with even more savings opportunities. When you put all these reasons together with the fact that leasing creates a tax advantage over ownership, the best kind of equipment financing gets even easier to see.

For more information about how financing can benefit your business, you’ll need to contact a financing company that helps connect businesses in your industry with the machines they need to be competitive in the marketplace.

SHARE IT: LinkedIn