Here are the facts – if you’re in business, at some point you’re going to need to buy equipment. Whether it’s trucks and trailers for the road or medical equipment for a physician or computers for your office, at some point you’re going to have to acquire equipment. Unfortunately, most businesses aren’t flush with enough cash-flow to make the outright purchase of equipment possible. This is where equipment leasing or financing steps in.
Furthermore, even if your business has the cash-flow to support outright purchases, those huge cash outlays typically aren’t smart uses of business capital. Being able to finance equipment for your business is a great way to preserve capital while staying on the cutting edge of technology all while deriving significant tax considerations and reaping increased productivity and profits.
Top 5 Benefits of Equipment Leasing and Financing
“If it appreciates, buy it. If it depreciates or becomes obsolete, lease it…” – J.Paul Getty
Preservation of Capital
Yes, it’s great to say “we pay for everything in cash” but do you really want to tie up, $50K, $100K, or even $500,000 in capital just to say you “own it” outright?
What else could you do with that amount of capital? How about bringing on new employees or increase your marketing budget? Always strive to be smart with your cash reserves, don’t sink or squander them into depreciating assets.
With an equipment lease, there’s the benefit of knowing every single month how much you’re spending on it – as such, you can account for the payment as a fixed monthly expense. There are no surprises at the end of the month when calculating profitability. Furthermore, you can bake in the monthly expense into your cost structure to account for it.
Depending on the structure of your lease, the whole cost of the equipment or the monthly payments can be deducted from your taxes. These are very real savings and serve to offset or eliminate the true “cost” of equipment.
If you’re in an industry where technology is always progressing, equipment leasing or financing allows you to stay current with technology. Your leases can be structured to stay “on-trend” with product cycles, allowing you to stay ahead of your competition. You’re ready to move as the market moves. Just Say NO to obsolescence!
Banks love issuing turndowns… It’s almost like they are in the business of NOT making loans. On the contrary, Capital Funding Partners works to get you approved, regardless of credit history. We can issue an approval in under 24 hours and fund a deal in as few as 3 business days. Work with someone who wants to tell you YES, not NO.
Getting the Equipment You Need
Quit banging your head against walls trying to figure out how you’re going to get the equipment needed for your company. Let us figure out a way to make it happen for you!
Capital Funding Partners understands how important it is for your business to get the equipment it needs at terms it can afford.