Whether you’re trying to expand or simply support your current client base, your business needs equipment. But not all businesses are in the position to invest money in purchasing new property. Instead of purchasing equipment brand new, you may want to consider either leasing or financing. Either can be achieved without having to tap out small business loans or expend significant working capital.
Many businesses simply don’t have the liquid cash on hand to make a big investment in a new asset. This is especially true of businesses that are in a cash heavy industry and need to maintain their liquidity, such as restaurants. When leasing or financing, a business can pay for the equipment over time without impacting its working capital. The business can also have the option of purchasing the equipment later on when financial situations have resolved themselves.
When procuring a loan for business capital, you’re often beholden to variable or changing rates. This is especially true if either you or your business have bad credit. But when financing or leasing equipment, it’s possible that you can acquire it with no-interest financing. You can also get a fixed rate of interest. For leased equipment, the leasing costs will often be far less monthly than a purchase cost.
Through a leasing or financing agent, you will often have a longer time to pay the loan or a lower monthly payment. These preferable terms will improve cash flow for your business. Not only will you be able to procure the equipment you need immediately, but you’ll also be able to get it without adversely impacting the operations of your business. This enables you to focus on supplies and building your revenue.
Though you can purchase equipment with business credit lines and loans, there may be times when you need these funds for other reasons. By leasing and financing separately from your other credit options, you will be able to keep your other credit lines open for any emergencies that occur. If your business is in a transitional time, such as during an expansion, this becomes even more important.
Going through a conventional lender is often a lengthy and difficult process. Leasing and financing, on the other hand, can be done much more easily through companies that specialize in this type of lending. Leasing and financing of individual equipment is often easier because the equipment itself provides the collateral for a loan; this is much like the difference between a personal, unsecured loan and an automobile loan.
Whatever you need to grow your business, MY Company Funding can help. Contact us today to find out more information about the products and services that we can offer. When it comes to equipment, your business often can’t stand to wait.