Should I Finance?
The majority of capital equipment acquired today is financed1. It's important to understand why other small business owners decide to finance equipment before determining if it's a good strategy for your specific situation.
Reasons Small Business Owners Finance Equipment
We hear from successful doctors and small business owners who have plenty of cash on hand to buy new equipment. Most of them still decide to finance these capital purchases to grow their business. But why? Here are some of the reasons we hear:
Ease of Cash Management
Financing equipment allows business owners to preserve cash on hand for other day-to-day expenses such as operating expenses, personnel and marketing.
Keep Credit Lines Open
Equipment loans give businesses the flexibility to keep existing bank credit lines open for day-to-day expenses.
Up-Front Revenue Potential
Business owners often prefer to use their equipment right away while spreading loan payments over the life of the asset. This allows them to generate income from the equipment which, in turn, may allow them to pay off the loan sooner.
Cash for Alternative Investments
Some business owners choose to use excess cash on hand for other business or personal investments.
Savvy business owners know that tax benefits associated with Section 179 of the tax code may allow them to deduct the full equipment purchase—even if it's 100% financed.
Simplicity vs. Banks
Most business owners are busy and want the financing process to be streamlined, yet fair and honest. Many banks may require additional collateral on equipment financing. It may take several days to process your financing request and additional paperwork may be required. Securing funding through Professional Solutions Financial Services is quick and easy.
If you decide that financing your equipment is the right choice, we invite you to check out additional advantages of financing through Professional Solutions.