In today’s marketplace, almost every business uses some type of technology. Whether it’s to store vital business records, process orders, keep track of inventory or simply ring up sales, if your business technology isn’t up to date and working properly it can have a negative impact on every part of your business. If your technology should fail completely, it could bring business to a grinding halt. It’s important to update or replace technology as it becomes old or obsolete. However, keeping your business technology current can be expensive. The upfront cost can keep small business owners limping along with ancient technology and miss out on the benefits new technology can provide. Equipment financing can be the perfect solution, providing your business with the latest technology and allowing you to avoid the huge upfront expense.
How Equipment Financing Works
Equipment financing is an alternative financing option that can be used to purchase technology equipment for your business. An equipment financing provider will typically provide 80% of the upfront cost of new equipment. By only being required to put up 20% of the cost initially, a business owner can purchase the equipment they need without taking on the entire expense all at once. The repayment of the remaining 80% is spread out over time.
Repayment terms vary from a short period up to 10 years, depending on the cost of the equipment. The equipment is considered as collateral until repayment is complete. Equipment finance providers each have their own terms and some may also require a personal guarantee or a lien on additional business assets.
Benefits of Equipment Financing
While equipment financing can benefit various industries, it can be especially beneficial to businesses that rely heavily on technology. Because of its rapid evolution, it can be difficult and expensive to provide your business with the most up-to-date technology.
Reduce Upfront Expense – The most obvious benefit of equipment financing is not having to pay the full purchase price all at once and significantly reducing your working capital. The cost of the equipment is spread over a specified time frame, keeping more valuable working capital on hand and in the business.
Mitigate Risk – Purchasing new technology outright rather than financing involves a certain element of risk. It can create a significant reduction of available working capital, restricting a business financially. A lack of working capital can cause a business to miss out on a great opportunity or struggle in the event of an emergency. With equipment financing, working capital is preserved and the risk is reduced.
Increase Productivity- When it plays a significant part in everyday operations, having the most up-to-date technology can help improve production. Not having to struggle with antiquated equipment to get their work done will not only boost employee productivity but it will increase their job satisfaction. This can, in turn, increase employee retention.
Remain Competitive – Cutting edge technology can also keep you one step ahead of the competition. When customers see that you can provide them with a better product or service faster and more efficiently, they will choose to do business with you rather than one of your competitors. Using state of the art technology will project a more professional image to your customers as well.
Get the Technology You Need Now
Staying current with your industry’s technology can promote business growth in multiple ways so it’s crucial that you have the latest equipment. CFG Merchant Solutions can help you make that happen. equipment financing can be a powerful tool for business growth while also preserving working capital for other expenses and opportunities.
Equipment financing through CFG Merchant Solutions can help keep your business moving forward. We offer a variety of alternative financing options to help your business stay on the cutting edge by providing efficient access to working capital. Don’t wait any longer – contact us to see how we can help grow and fund your business today!