Most small businesses need equipment in order to operate and grow, and each business must decide on an acquisition strategy that is right for it. But, a majority of businesses turn to equipment leasing and financing so they can take advantage of a range of benefits.
ELFA highlights five key benefits that make equipment finance an advantageous option for small businesses:
1. Get 100% equipment financing with no down payment. This allows the business to hold on to cash, or working capital, and use it for other purposes like financing project start-ups, expansion, improvements, marketing, or R&D.
2. Eliminate the risk of ownership. A business just starting out can use equipment financing to help lessen the uncertainty of investing in a capital asset until it achieves a desired return. Advantages include increasing efficiency, reducing costs or meeting other business objectives.
3. Keep up-to-date with new technology. To be on the cutting edge and be competitive, businesses often need access to new technology. Leasing, loans and other financing help small businesses get more technology and better equipment than they would have gotten without financing. Businesses that use lease financing can avoid the risk of owning obsolete technology and equipment, since many agreements allow for easy and fast equipment updates.
4. Plan expenses for cash flow and business cycle fluctuations. Equipment financing helps budgeting by setting customized rent payments to match cash flow, and even to match seasonal cash flows.
5. Obtain the convenience of product and service bundling. Certain financial products allow businesses to finance the entire cost of equipment, including installation, up-front maintenance, training, and software charges. That puts packaging systems, and ancillary products and services into a single solution so the business is freed to focus on its core operations.
For more information about how equipment financing helps businesses succeed, visit our site. This site includes a digital toolkit, articles, informational videos, definitions of the various types of financing, a lease vs. loan comparison and questions to ask when financing equipment.