Technology changes every six months. This means there are newer, faster, and more efficient machines available for your business.
If you haven’t upgraded your equipment in the last few years, you are not maximizing production. New equipment can make your business more competitive. It is wise to consider financing equipment purchases, so that you can make the upgrades affordable. Here are a few benefits you should consider when deciding to use business loans to finance equipment:
It’s Simple
Getting a loan for equipment is easier than ever. Financing Your Way helps businesses that depend on equipment keep up-to-date machines. The criteria for applying is not as strict as in the past, so borrowers of all credit levels are encouraged to apply. When you are approved for a loan to finance your new equipment, you will have to implement different accounting methods to record the loan and interest. Accounting for equipment is easy when you consult with your CPA before and after receiving your equipment loan.
Improve Equipment Efficiency
When you finance equipment, your company builds history with lenders and over time you will qualify for additional offers with better interest rates. This will allow you to keep your machines up-to-date. No more of waiting for your machines to break and then having to replace them. Remember that installation takes time, but you can minimize downtime by planning installation in segments. This will ensure that cash flows are not affected by the time it takes to install and become acclimated to new technologies.
Improve or Build Business Credit
Financing equipment improves your business and personal credit. When you make timely payments, you prove your credit worthiness and encourage lenders to have confidence in your business. Be sure to consult with your CPA if you plan on upgrading your machinery and equipment often. They can provide tax advice regarding section 179 for small businesses.