Equipment financing is made available to businesses that require capital for new machinery and other tools that help them produce their products. Plenty of businesses would not be able to meet consumer demand if this particular type of business financing was unavailable. Let’s take a look at the many benefits of this type of financing.
Your company only has so much cash-on-hand to spend on overhead, new opportunities, unexpected expenses and other costs. Equipment financing can help you keep as much cash in-house as possible. There is no point in dedicating a significant portion of your money to equipment upgrades or purchases when financing is available. Obtain equipment financing and you’ll enjoy the benefits of having accessible cash flow and increased clarity in budgeting.
Equipment financing won’t exhaust your bank lines of credit. This style of financing empowers you to conserve your working capital while maintaining positive relationships with a myriad of lending institutions.
Tapping into equipment financing really does help your business hedge against inflation risk. Consider the ramifications of placing a large down payment on equipment or paying for the total cost all at once. It ties up your free cash and also makes little financial sense in terms of inflation. Equipment financing will allow you to make a series of payments over time and the lender will be the one who absorbs the devaluation of these payments over the course of the financing term due to the inevitable inflation.
Full financing is available for those in search of funding for equipment. Financing can even be used for software and installation to boot. In some instances, no down payment will be required. This is a stark contrast to traditional lending institutions that almost always require some sort of initial down payment.
Some equipment finance companies are willing to dispose of equipment that becomes outdated or unnecessary for operational purposes. This type of service removes the burden from the borrower so he can squarely focus on improving the efficiency of his operations rather than figuring out a lawful way to dispose of old equipment.
Traditional loans are often rife with hidden charges that are detailed in the fine print of the contract. Equipment financing does not contain such hidden charges. This style of financing is completely transparent in all facets.
Take a look at the equipment financing interest rates and you will find that they are quite favorable compared to other types of financing.
Equipment financing is commonly structured in a manner that reduces the borrower’s tax burden. Equipment leases that are “tax-oriented” actually include the value of tax benefits.
Conventional lenders typically have strict repayment programs with little, if any, flexibility. The exact opposite is true of the comparably flexible equipment financing. In some situations, full financing of equipment can be arranged without any down payment. This is quite the benefit for organizations that value cash flow.
Equipment financing and short-term working capital loans are available through MY Company Funding. We are currently offering short-term working capital loans. Applicants with a credit score of 500 or higher will likely be approved for this style of loan after submitting an application and bank statements. We also provide financing that will help your business reach the next level. If you have any questions about our short-term working capital loans or equipment financing offers, do not hesitate to contact us by calling 740-917-4960.