Countless companies have relied on equipment financing: Virtually all businesses need equipment, but the equipment is often expensive, which is where financing comes it. The following are eight of the reasons why it’s an attractive option.
In some situations, it may be possible to access 100% financing. In other words, your business won’t need to tie up money in a down payment.
Working Capital Freedom
Regardless of whether or not you go for an agreement that provides 100% financing, equipment loans are a great way to keep your working capital free for other uses, as pointed out by Business.com. You can continue to invest in research and development, marketing, and other critical areas.
Depending on the agreement, your financing company may manage your equipment from the day you obtain it to the day you dispose of it. That means you and your employees can focus on other tasks.
Beyond help with management, many agreements allow the borrower to bundle costs such as maintenance and installation into one simple, affordable solution.
Equipment financing is a method through which your company can stay up to date with the latest gear and technology. Among other benefits, employees and companies with updated equipment will have an advantage productivity-wise over those that lack it.
Immediate Revenue Boosts
If you wait to save up to buy equipment outright, you may be missing out on an opportunity to use it to boost your revenue. Improving your company’s gear via equipment financing can let you put the equipment to work, helping to generate revenue immediately.
Worried about your cash flow becoming out of sync with monthly payment due dates? Is your business prone to seasonal slumps and surges? Your lender may be able to provide flexible payment terms that take such factors as those into account.
Agreements with fixed interest rates can help protect your business from future inflation. They also keep your payment amount steady and predictable.
Want to speak to a business financing expert? Get in touch with us at Star Capital USA soon!