What is Business Equipment Financing
As the name implies, business equipment financing allows you to lease equipment for your business on a finance plan. Instead of getting a traditional loan from a bank to buy equipment business owners can deal with a qualified business equipment financing firm that specifically provides leases for this purpose. One major advantage to business equipment financing is that the life of the lease is directly tied to the useful life of the equipment so you don't have to worry about depreciation or your machine becoming obsolete before the financing period ends. Another advantage is that you'll be able to write off the entire cost of the lease as a business expense on your tax return.
How Equipment Financing Can Help Your Business Grow
If you shop around for the best financing plan you can actually use your equipment to finance your business. For example, if you would like to bid on an upcoming project but you don't have the necessary equipment to fulfill the job, you can apply for business equipment financing and then place your bid in confidence knowing that you'll have the tools you need to complete the project. If obsolete tools and machines are keeping your business from competing in the marketplace a business financing plan may be particularly beneficial to helping you meet the needs of your consumers.
Things to Consider before Accepting Financing
While equipment financing is a great tool for businesses it's still wise to shop around for the best interest rate, lease terms and equipment selection before you commit to a plan. Decide on a budget before you go shopping for a new piece of equipment. Ask about the finance company's experience, the details in the contract and if there are any flexible leasing plans that you qualify to receive. You should also ask the company if they're familiar with your specific equipment needs and if they're able to provide detailed recommendations that will suit your business.
If you need to finance the growth of your business then business equipment financing may be a good fit for you. By shopping around, setting a budget and interviewing prospective lenders and factoring companies you'll find the best business equipment financing program for your company.