Why Should You Choose

Equipment Financing?

Nearly every business in the United States finances or leases some of its equipment, and others finance or lease ALL of its equipment.  Why? 

Conserves Working Capital

In business is it often said "Cash is King."  Regardless of company asset size, its cash position often separates the acquirer from the acquired.  Preserving cash and  improving cash flow are vital to a healthy company. 

Equipment financing allows a company to better match cash outflow (the monthly payment) with the benefit received from the equipment financed while conserving valuable working capital and bank lines. 

Preserves Bank Lines Of Credit

There are many sources for equipment finance, but fewer for CASH.  Working capital (cash) is needed for operating expenses, inventory, payroll, taxes and more.  Using your precious bank lines from equipment financing could be a terrible mistake.  While the cost of credit through your bank line may be less than a typical equipment lease, it could prove to be an expensive misuse of a vital possession ... your bank line of credit.

Links Cost and Benefit

If the equipment is "income producing" such as production or auto repair equipment, it is easy to see the linkage between the monthly "cost" of the equipment and the financial benefit received the from the equipment.  The same applies to non-production equipment.  The benefit received from your office computers, a vital software program, etc.

Establishes or Expands your Company's Credit

In recent years consumer credit has enjoyed very low rates, especially loans secured by your home.  Many small business owners are tempted to finance their business with their personal real estate.  This may make sense if the business does not require much equipment.  However, it does not establish credit for your company and may bring down your personal credit score as business related debt is reported as personal debt.

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