The right tools can help your business become more productive and profitable. So, if you want to grow your business and don’t have the cash flow to invest in equipment, you can get funding for it. With business equipment financing, you can buy new and used equipment or vehicles. This will help you save your working capital for other purposes such as inventory or operating costs.
How Can A Finance Company Help You?
If you have an established business and are looking for a finance company to help you purchase certain equipment and machinery, there are several available around. They offer to finance the purchase of different equipment that ranges from small office equipment to huge construction machinery. Here are some of the equipment that you can finance.
- Desktop Computers
- Office Equipment (such as fax machine, printer, photocopying machine, and so on)
- Service Trucks
- Commercial or Company Vehicles
- Construction Trucks (such as forklift, excavator, bulldozer, cranes, and more)
- Medical Equipment
What are Your Options?
Finance companies offer many equipment financing options. You need to identify and choose the right one for your business. Below is a list of the different types of financing agreements for vehicles and equipment available in the market.
- Financing Lease – This finance contract allows you to use the equipment or vehicle and also allows you to enjoy the benefits of the property. The finance company retains the actual ownership of the equipment leased.
- Equipment Rental – With this agreement, the finance company will buy the equipment you need on your behalf and you’ll rent I from them for a certain period of time.
- Chattel Mortgage – This is an effective way to finance goods for business use. As part of this loan agreement, you borrow funds to purchase equipment and also become the owner at the time of purchase. But in return, you provide a loan guarantee to the finance company through a mortgage on the equipment.
Always Seek An Expert’s Advice
It is important for your company to have a suitable financial structure. If you choose the wrong financing arrangement, you can damage the financial stability of your company. To avoid such mistakes, it is worth seeking the help of an experienced finance broker who has in-depth knowledge of credit policies and standard requirements for financing business equipment.
A good finance broker will be able to give you the right financial advice to help you find a better solution for your needs. You should also seek help from an accountant in understanding depreciation treatment and any tax benefits that may be available to you. That way, you can get the much-needed funds to complete your business.
Final Note
Running a business, whether it be big or small, entails a lot of financial decisions that can make your business grow more or damage it if you make a crucial mistake. That is why it is always a wise thing to seek the help of financial experts in dealing with situations that has the possibility of harming your business financially.
