Small business owners are serious entrepreneurs. You don’t want to just survive in the marketplace, you’re determined to thrive. You want to expand your reach, find more customers, and insulate yourself from risk as much as possible. In order to achieve that kind of growth, you need to be able to keep investing in your business. Equipment financing is a great way to do that.
Not everyone understands what equipment financing means. Equipment financing is just another way to fund a business. Small businesses typically find funds from one or more of three sources: self-funding, investment and loans. Equipment financing is a very useful alternative to a traditional small business loan from a bank or credit union. For example, instead of the business owner coming up with a down payment for equipment, financing can cover a full 100% of the cost. This ultimately frees up cash for the company. Rather than spending on a down payment, you can keep a prudent reserve or invest elsewhere in your company.
Another advantage with equipment financing is that you can purchase used equipment. This is another way to save money up front, and reserve cash to invest in other areas of the company. To be successful, a small business needs to also pay attention on items like marketing and ways to diversify offerings and client base. Another key issue for ambitious small business owners is hiring and human resources. Investing in people helps companies run more efficiently, but that means finding the right person for each role. Sometimes a search like that can take time and money. That means that finding savings elsewhere is key.
Equipment financing is the smart way to acquire additional tools, no matter what industry you operate in. These funds can be used to purchase vehicles, conveyor belts, ovens, cranes and more. The way that equipment financing is structured means that it can really benefit a small business entering a growth phase. There are tax advantages to this kind of credit, too. With equipment financing, a small business is able to deduct the full cost of the equipment it purchases under section 179 of the IRS tax code, rather than simply the interest.