Many business owners have had to make a wide variety of business decisions to meet the demands of their growing customers. Sometimes that involved the purchasing of new equipment and machinery that is needed to produce products needed to fulfill orders. If you are considering equipment financing you’re not alone. Many large and small businesses have had to turn to equipment financing when traditional funding was not available. If this is an option that you have thought about, below are some reasons that you should consider this method of financing as well.
Keep More Cash on Hand
When you have your equipment financing, you reduce large amounts of out of pocket spending, which often requires a large influx of cash to be disbursed at one time.
You can keep more of your cash on hand for other issues that may arise during your normal course of business, such as rent, payroll and so forth.
Take Advantage of New Opportunities
There’s nothing worse than being presented with a new opportunity only to discover that you’re unable to fulfill the orders because you don’t have the necessary resources to do so. With equipment financing, not only can you maintain some of your working cash to purchase inventory items needed to fulfill more orders, but you can also purchase the type of machinery that will fulfill orders in large quantities. In other words, purchasing newer, more updated equipment will allow you to maximize your output required for filling more orders.
Maintain Other Forms of Credit
Equipment financing is a special kind of funding designated specifically to purchasing large pieces of machinery. You won’t need to tap into other forms of credit that you may have with other lending agencies and can thus utilize those resources elsewhere.
There are a host of other advantages that you can consider when deciding on whether or not you want to use equipment financing to cover major operating purchases. For example,
- 100% financing is normally available
- It can be used as a hedge against the risk of inflation
- Disposing of old and outdated equipment becomes a burden of the lender
- You can take advantage of tax advantages and lower interest rates
- You can choose from a wide variety of financing programs
For more information on finding the right equipment funding solution for you, please contact Affinity Capital Funding today.