Equipment financing is different leasing the equipment in several ways, first of all because when you finance equipment you actually purchase it and own it, although the payments are spread out over some period of time. This is in contrast to an arrangement where you are leasing the equipment, because in that situation the financing company retains ownership of the equipment, while your business is simply paying for the use of that equipment. Here are some of the most important benefits to your company which are provided by equipment financing.
Save your cash reserves
By having the equipment financed through a lending partner, your company will not have to use up its important cash reserves, and they can be saved to manage other important business situations and expenses. If you were to use your available business line of credit to pay for the equipment, that would probably completely tie up that line of credit, and make it unusable for any other business reason.
Custom financing solutions
By working with a good equipment financing partner, your business can generally work out a financing solution which is entirely tailored to fit your specific circumstances, relative to your budget, your tax objectives, and your actual business requirements.
You can generally have your equipment financed 100% through a really cooperative financing company, and that will allow you to avoid having to come up with any large deposit, which might take important capital away from other business needs.
You may be able to realize some significant accounting advantages through financing your equipment. As an example, you may benefit by improved earnings, an increased return on assets, and off-balance-sheet financing which does not impact your business financial statements as severely.
Equipment financing with Business Capital Providers
Get the equipment financing your business needs to acquire critical equipment that will help take your company to the next level, and enjoy real growth. Contact Business Capital Providers today, to find out ways that we may be able to help you with that all-important financing for your equipment to keep your competitive in your market.