Financing equipment can be key to managing cash flow
April 19, 2018
Today more than ever, managing cash flow is critical. Choosing equipment financing instead of paying cash can have a big impact on the financial security of most businesses.
There are 3 main advantages of choosing financing.
Be one step ahead of your competition.
When businesses wait until they have excess cash to make an equipment purchase it can have some detrimental effects.
· Delaying equipment purchases can mean the opportunity cost of missed revenue that could have been generated by the new equipment.
· Delaying purchases can also benefit your competition. They may purchase the equipment first and gain a long-term competitive advantage..
It is no secret that nothing in life is guaranteed. Holding on to cash reserves and lines of credit can have a big impact on your business when unsuspected circumstances arise. Cash on hand becomes even more important when facing economic downturns, negative changes in market conditions, or natural disasters.
Seasonal changes happen more frequently, but can also have a big impact on cash flow. Reserves can become the lifeblood of business in low times.
There can be additional costs included with new equipment. These costs can include warranties, installation, freight, training or software. Many times, these fees can be financed. If there is a cash shortage, there might not be enough cash to cover the extras.
If you or your customers are looking to purchase equipment or software, we want to talk to you. Let’s work together to determine the best financial option.
For additional information, please contact us at (800) 247-8136 or firstname.lastname@example.org.