Use Equipment Financing to Supply Your Business
Any well-prepared company must have the appropriate tools in order to succeed but paying for it in cash can be downright unfeasible for some. Large machinery or advanced technology can be expensive, so it can be helpful to use equipment financing to make those purchases. This frees up some of your capital for other pressing needs.
How Does It Work?
The basics of this kind of solution are the same as borrowing money to purchase a home or automobile, but the money is used to outfit a business with the instruments needed to operate. Once the company pays a down payment, it receives the funds to make the necessary purchases. That amount is repaid to the lender in installments. After the full sum has been remitted, the business will officially own the gear.
Equipment financing might be right if you are in the following situations:
- The tools will be used for a long time.
- You would like to ability to customize your loan terms.
- You want a straightforward application and decision.
If this doesn’t sound right for you, there is another possibility.
What Alternatives Are Available?
If a loan doesn’t seem to be the best path for a company, equipment leasing is another avenue to consider. In this scenario, the owner of the equipment charges the business a usage fee. Ownership never switches to the lessee, although some owners offer a chance to buy the items when the lease term is over.
This might be appropriate if you are in the following situations:
- You are on a tight budget.
- Your gear will need regular upgrades.
- You want to ensure that you will qualify.
Contact Us Today
MWFSG (Miller-White Financial Services Group) is available to assist you with any of your questions about equipment procurement solutions. Whether you need to replace a restaurant kitchen or you need new copy machines in all of your offices, we are happy to help.