While equipment financing is sometimes the only option for startup or expansion, it can also be a great investment when capital exists for this purpose but could be put to better use elsewhere. Since the loan is secured against the equipment itself and often has no down payment, and you’re not out of pocket for your purchases, you might find that making the interest payments on this kind of loan can actually increase profitability by allowing you to invest your available cash in areas of your business that will give a better return.
Equipment also has upkeep costs, requiring regular maintenance and occasional repair. Equipment financing may allow you to replace your aging equipment with new equipment for less monthly outlay then maintaining your existing equipment.
Finally, there can be significant tax savings as payments may be deductible, in full or in part, depending upon the equipment and structure of the loan.
Big Think can advise and assist you with finding the right kind of Equipment Loan for your business.
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