2020 has been full of challenges for entrepreneurs across the country. Adaptation has been key. While everyone is facing difficulties due to a recession, there are still ways to shift focus, or even start a new business. Understanding where the gaps are in the market right now is very important. People always have needs, and the key to a successful business is finding ways to meet them.
Although many small storefronts are closed due to social distancing restrictions, some have found new ways to deliver goods and services. Some pet grooming businesses have gone mobile. Many office-based businesses have transitioned to a work-from-home model. Retail stores have expanded their online presence. Restaurants have started to focus on outdoor dining, takeout and delivery. Some have moved to a food truck model, which allows them to serve customers while saving on rent.
All of these shifts require not just ideas, but investment. Businesspeople have needed to acquire all kinds of unexpected goods, including plexiglass dividers, new software subscriptions and personal protective equipment. It can seem counterintuitive to spend money during a recession. But the truth is, it can be necessary for weathering a downturn. Plenty of companies that are now household names got started or expanded during economic downturns. These include AirBnb, Microsoft and others. Today, for example, many educational startups are booming, seeking investment, and preparing to expand.
At Alliance Leasing, we’ve been helping businesspeople weather the COVID storm since it got started. Our equipment financing contracts are, in many ways, more flexible than bank loans. No down payment is required. We’re perfectly able to finance used equipment, not just new goods. We can finance almost every kind of equipment businesses need, including tools, signage, and software.
Finally, one great thing about financing now is that it’s encouraged by the current tax code. Thanks to the Tax Cuts and Jobs Act of 2017, companies can deduct up to $1 million in equipment they’ve financed. The only requirement is that it be placed into service during the year. Time is quickly running out to take advantage of this deduction for 2020. This has been a year when many businesses could benefit from a section 179 tax break.