The Benefits of Equipment Financing

Both big and small businesses use equipment financing for investing in capital and managing their cash flow, along with the company’s balance sheet. With equipment financing, your company can get the equipment needed and avoid some of the most common uncertainties that are usually associated with new equipment acquisition. There are several reasons your business may choose this equipment purchasing option.

Improved Cash Flow

One of the top reasons that modern businesses opt to finance is cash management. There are no down payments required and no upfront costs, along with lower monthly payments. This allows your business to preserve its capital to use in day-to-day operations or another aspect of your business.

Increased Purchasing Power

With financing, your company can acquire additional or higher-end equipment. That’s thanks to the affordable payments, along with the customizable solutions.

Convenience and Flexibility

With equipment financing, you can customize a finance solution that’s specific to your budget. Additionally, the application process is fast and easy, which allows you to continue responding to your business’s needs, technological advancements, and industry trends.

Preserve Your Lines of Credit with the Bank

When you use financing for the equipment you need, you can ensure you have what is needed for daily operations. With equipment financing, you don’t have to tie up or even reduce your lines of credit at your bank or another financial institution.

Financing Off the Balance Sheet  

When you purchase equipment, it is going to add debt or even reduce the amount of cash on your income statement. With an operating lease for equipment, you don’t have to worry about reducing your working capital, which is going to help improve your reported earnings while increasing a return on your assets.

The Possibility of Tax Benefits

There are some financial products that may be eligible for tax-deductible payments, along with other tax-relief possibilities. This is information that is not meant to be taken as tax advice. However, it’s a good idea to discuss this possibility with your tax professional, because you may be able to experience tax savings.

100% Financing Options

When you choose equipment financing, you have the chance to finance the total solution, which includes maintenance, training, installation, software, equipment, and an array of other services in a single transaction.

If you need equipment for your business, there are more than a few factors to consider. However, equipment financing offers an array of benefits that can’t be denied.

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