The Benefits of Financing Equipment as Opposed to Paying with Cash

All business financial decisions have to be made with one goal in mind; how will it benefit your business and your bottom line. Every expansion or replacement of equipment should make your operation more efficient and profitable. Here are a few things to consider.

• Conserve Your Cash and Working Capital– Your cash is not tied up in equipment. Instead, money is available for opportunities such as marketing, buying inventory on discount, or being able to manage seasonal cash flow needs. It is easier to finance equipment than to borrow money; conserving your capital makes sense.

• Preserve Your Bank Credit Lines– Your existing lines of credit and borrowing availability are left untouched and ready to use for operational and short-term financing needs. Every business has a borrowing limit and should be saved for immediate or unexpected needs.

• Pay from the Savings of Your New Equipment– Monthly payments allows you to use your new equipment immediately – your only initial cash outlay is usually the first and last monthly payments. Your new equipment, with its operating efficiencies and improved production, should help pay for itself as you use it… over time. A great example is LED lighting; the energy efficiency over halogen lighting allows you to pay off your loan with the energy saved within 24 months on average.

• 100% Financing– Our capital financing covers 100% of the cost of your new equipment. You can include “soft” costs such as shipping and installation. Unlike a bank loan, there are no down payments or compensating balances required. Again, you are conserving capital for other needs.

• Overcome Budget Limitations – In situations where limited budgets would ordinarily delay or prevent the acquisition of equipment due to a limit on capital expenditures, equipment financing allows for quick budget approval due to its small monthly expense. A loan can fit the tightest of budgetary constraints.