Today more than ever, managing cash flow is critical.
Choosing financing instead of paying cash for equipment 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 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.
- Be prepared.
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 and can also have a big impact on cash flow. Cash reserves can become the lifeblood of business in low times.
- Be equipped.
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 shortage of cash, there might not be enough cash to cover the extras.
If you would like to learn more about how equipment financing can help your cash flow, we would love to talk with you. Let’s work together to determine the best financial option for your business.