Build Your Business Up with Equipment Financing
Financing your equipment is an excellent way to provide high-quality services for your customers. For new businesses, the latest equipment can be very costly and drain your working capital. Keep your business flexible and efficient by using equipment financing for the affordable operation and use of the latest machinery.
With leasing, you can afford to continue to upgrade your machinery. If you need the latest medical equipment, computer technology or heavy machinery, it can be too costly to buy and sell equipment each year. Financing allows you to use the equipment you need for a predetermined period of time, then return it to your lender. Trade up to this year’s model without worrying about the devaluation of your property.
A traditional equipment loan allows you to make payments on a piece of equipment, and you have the benefit of owning it outright at the end of the term. However, it may be more difficult to sell and upgrade your equipment if it becomes obsolete soon after the end of the loan.
Depending on your equipment, you may not even need a down payment. Because you aren’t taking out a loan or attempting to buy the machinery, your lender will be able to provide you with the tools you need right away. Don’t spend all your savings on equipment or worry about breakdowns leaving you out of commission.
When you receive equipment financing, you’re building your credit score and your relationship with your lender. This loan allows you to access other financing in the future, such as a line of credit or a traditional bank loan. Small businesses need a solid credit score and credit history to show financial institutions that they’re a responsible and reliable borrower.
Another great advantage of financing is that the cost is set. Monthly payments are consistent and predictable, making it easy to budget for the future. In the world of small business ownership, few things are certain. It’s comforting to find a stable area of finance that doesn’t include high levels of high or inconsistent payments.
Whether you’re struggling with outdated machinery, working hard to save for essential equipment or simply want a reliable way to secure your equipment without draining your bank account, find out if e equipment financing is right for you. Once you’ve finished a lease you can choose to purchase the equipment outright. An equipment loan lets you spread out the payment and avoid a major upfront expense.