What are the benefits of equipment finance?
Anyone who runs a business will tell you that the costs are often very high. That’s because on top of paying wages and the cost of leasing your premises, there is usually the need to continually purchase new equipment to keep operations moving forward.
The cost of new business equipment can vary widely depending on your industry and exact requirements, however, it’s not uncommon to be paying anywhere from $100,000 to $200,000 (or more) for new equipment.
Instead of paying for the equipment upfront out of your own pocket, financing the purchase allows you more flexibility.
By using equipment finance, you’re able to either raise the capital for equipment needed to start a business, or to maintain the right equipment for your needs. By spacing out your payments over an agreeable term, you’re able to better manage your cashflows and put that money to work in other areas of your business.
Typically, accessing equipment finance can be easier to obtain than many other types of loans. If you’ve got a newer business or you don’t have perfect credit, then this might be an option for you. The approval process can also be relatively quick compared to other forms of finance which can be quite valuable.
Some equipment finance loans can be as short as several months, while longer ones can be as long as 10 years. These options will also make obtaining finance more practical.
In any business, you need to have the right tools (or equipment) to do the job. By having high-quality, newer equipment with better technology, you’re giving yourself a competitive advantage over your competition.
If other people in your industry are unable to compete with you because your equipment is newer or more efficient, then you might be able to attract more customers or even reduce costs in other areas. You can boost your output and reduce the stress that comes with having older, less functional equipment.