7 Reasons To Consider Equipment Financing For Your Business
In today’s rapidly changing economy, your business needs to seize every opportunity to preserve capital and prepare for an uncertain future. Yet, you still need the right equipment to keep your day-to-day operations moving effectively.
In order to balance these two priorities of future flexibility and investing in the right equipment, you should consider an equipment financing agreement (EFA) or lease to meet your company’s needs.
Why is equipment financing the best option for your business? Here are just a few ways how your business benefits from the equipment financing process:
1. Equipment Financing Makes High-Cost Equipment Affordable
Acquiring high-tech or high-quality equipment is a considerable expense for any business. An equipment financing agreement (EFA) or lease eliminates this large upfront cost by fixing your payments over a short-term contract usually between five and seven years based on your business needs.
2. Equipment Financing Allows Your Equipment To Pay For Itself
With a simple, fixed monthly payment, equipment financing allows you to consider the equipment as a contributing asset. This means your financed equipment pays for its own costs as it is being used.
3. Equipment Financing Covers Everything, Even “Soft Costs”
A robust equipment finance or lease is a turnkey process where all “soft costs” of the financing process are included. These soft costs encompass everything from delivery, installation, freight and sales taxes so the process is seamless and convenient — you only have a single monthly payment.
4. Equipment Financing Simplifies The Loan Process
Especially given the most recent financial crisis, new banking regulations significantly delay the application and approval process of a traditional bank loan. In addition, a traditional loan requires a hefty down payment. However, an equipment financing agreement (EFA) or capital lease has a much simpler approval process and doesn’t require upfront capital for a down payment.
5. Equipment Financing Conserves Your Crucial Business Capital
No matter whether you’re a cash-strapped early stage company or a well-established enterprise, conserving business capital allows you to invest in higher priorities for your business. Financing your company’s equipment frees up your capital for critical activities such as increasing inventory, investing in marketing or adding new personnel. In addition, real estate or business acquisitions all require significant capital injections.
6. Equipment Financing Keeps You At The Forefront Of Future Upgrades
With today’s never-ending advances in technology, most business, industrial or commercial equipment soon becomes obsolete. Equipment financing allows your company to continually upgrade your vital equipment after a short term — that typically matches the life of the equipment — instead of committing to longer terms generally tied to commercial real estate loans.
7. Equipment Financing Pairs You With A Partner You Trust
Finding the best equipment finance agreement (EFA) or lease for your business depends heavily upon your network of existing relationships. When you partner with an experienced equipment financing company such as Capitol Leasing & Financing Service, you reap the benefits of our longstanding reputation in the finance industry, including:
Funding affiliations with national and global lenders offering extremely competitive rates and structures
Seasoned guidance and consultations for all of your questions and uncertainties
A quick and simple Seamless Electronic Process
Quick Turnaround Financing that ensures your EFA or lease is approved and funded quickly
Convinced that equipment financing or leasing is the best option for your business? Check out our Financing Programs to determine which EFA or lease might best meet your needs.
Ready to get started on an equipment finance agreement (EFA) or lease for your business? Click below to contact us or call 1-888-783-5327 to start a conversation about your equipment financing needs.