People are often wary about using credit for purchases.
WHILE It’s important to use credit responsibly, there IS NO REASON TO HESITANT. Credit is a tool that can be IMMENSELY helpful to businesses that are expanding. Using credit properly can help you and your business do more IN CREATING PROFITABILITY.
For example, spending tens of thousands of dollars on a piece of machinery outright can actually be a limiting choice. Paying that money up front is essentially putting all of your eggs in one basket. Using credit to make the purchase can stretch each dollar you already have in hand. With credit, YOU HAVE access TO thousands of dollars more in purchasing power. Instead of tying up YOUR MONEY, the business owner can use the same amount of capital to complete more projects.
Using credit and paying over time also means that equipment IS PAYING for itself during its useful life. For many entrepreneurs this is a great alternative to paying full price up front and losing their ability to invest in other goods, services and employees along the way.
Building a good credit score is important for businesses, just as it is for individuals. Business credit scores are compiled differently and work on a 0 to 100 scale. Two major companies track business credit scores: Dun & Bradstreet and Experian Intelliscore Plus.[1] Establishing good credit early can make it easier for businesses in the long run. In general, 75 or better is considered a solid business credit score. There are other lending sources for people who are starting out in business or who need to rehab their business credit. Our equipment financing is one option for entrepreneurs with less-than-perfect personal or business credit.
At Alliance Leasing, we’re able to finance almost any equipment a business could need. That includes everything from vehicles, to appliances for commercial kitchens, to business software. Our application is more straightforward than a bank’s, and we make decisions in less time. Best of all, with equipment financing, our clients are able to take advantage of deductions under section 179 of the IRS tax code. This means that they may be able to deduct up to $1,000,000 annually in equipment purchases, provided the equipment in question has been put into use during the year.[2]
[1]https://www.cnbc.com/select/free-business-credit-score/
[2]https://www.irs.gov/newsroom/irs-issues-guidance-on-section-179-expenses-and-section-168g-depreciation-under-tax-cuts-and-jobs-act#