You need equipment to run your business and sometimes the old models you currently have are no longer cost-effective. This means that you need the funds to buy or lease new ones. Finding the right equipment financing for your company is easier than you might think. Whether you are just starting out or trying to grow your business, there are options.
You can lease equipment, find financing options through the vendors or manufacturers and even use invoice factoring. When you can combine options, it makes for a better deal for your company. For instance, you can factor your invoices to get the cash needed to buy the equipment outright, use it as a down payment for your purchase financing plan or pay on your lease. When choosing between leasing and buying equipment you can look at whether you have the space to store the equipment after the project is over, how often you will need it and what kind of turnover there is for the items you need. For instance, if you need a point-of-sale system and lease it for a year, then you may be able to lease a newer model after your term ends. If you purchase that same system, then you would need to sell it to get the newer model.
When you take out a loan for your equipment financing, your personal and business credit histories will usually be considered during the approval process and it can take weeks to get the funds. Using factoring, on the other hand, is an advance on the work you have already done but have not been paid for. This means that there is minimal scrutiny of your credit and you can receive the money in days. You can fill out an online application and submit the invoices you want to factor.
You should research whether you want to lease or buy if you want preowned or new equipment and which vendors have the best items before deciding on a financing method so you know what you want to get. This can make the purchase process easier because you will already have plans for how to pay for it. You can work with the vendor to get the best financing terms moving forward and can sometimes get the option to get a new model at the end of the lease.
Equipment financing can help you get the items you need to start or grow your business. You can find many options for funding your needs such as leasing, vendor financing, and invoice factoring. You can even combine options to get the best payment options.