Equipment Financing up to $1,000 – $500,000
As business opportunities arise, the need for additional equipment becomes necessary to expand to increase operations. Whether you’re a small business or publically traded, all companies share a common denominator…. Need of Cash to operate. Even for a company with large cash reserves, financing equipment makes sense by matching cost to benefit. Cash flow becomes predictable and justifiable. Rather than tying up precious working capital or bank lines, smart businesses let the equipment benefits pay for the equipment itself through financing it.
To understand equipment financing and leasing, it’s important to understand what is considered “equipment”. In terms of equipment financing, any tangible asset, other than property or a building, used in the operation of a business may be considered business equipment. For example, desks for an expanding office, a pizza oven in an Italian restaurant, a medical X-ray machine, as well as a large CNC machine or construction implement, may all qualify as business equipment.
Many businesses choose to finance the purchase of expensive equipment to spread the cost over the useful life of the asset, making the purchase more accessible. There are also times when a business will choose to finance the purchase of equipment, to free up capital to invest in other areas of the business. As a result, equipment financing is a useful tool.
There are two options available for financing new equipment for a business:
- Equipment leasing
- Equipment financing