Contrary to what many entrepreneurs might think, it actually is not always the best idea to use your own money to buy pricey equipment for your company. But when your small business needs equipment—and does not have the funds available to buy it—what can you do? Borrowing the equipment for your small business is much more profitable and should save you quite a bit of money in comparison to purchasing your own equipment. Here’s why:
1. Keep Up With The Advancement of Technology
Imagine how expensive it would be to have to replace old equipment every time new technological improvements make your equipment outdated. Borrowing equipment allows you to get new equipment when your contract is up. Further, having the latest technology will make your small business more competitive in the market.
2. Save On Maintenance Costs
Many companies that lend out equipment include maintenance as part of the deal. On the other hand, if you buy your own equipment and it malfunctions or breaks down, you’re on your own. The costs of hiring someone to fix the equipment or of replacing broken equipment are just not worth it.
3. Conserve Your Working Capital
Borrowing equipment allows you to save more money for other aspects of your small business. Flexible, long-term, fixed rate equipment financing for your small business will definitely save you quite a bit of money in the long run. And don’t forget that some lease payments could be tax-deductible— saving you even more!
4. Bring Your Business To Its Potential
Great equipment can make a world of a difference for any small business. Bring your company up to its maximum operating potential, and the small business equipment financing will eventually pay for itself. Biz2credit can help with its small business equipment financing products for both new and established businesses.
This article was originally published by Biz2Credit
Published: October 15, 2013
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