Why Equipment Financing is Crucial for Established Businesses

June 28, 2021

I want to talk about why an existing business might consider equipment financing. First and foremost, you get the equipment sooner.

Video Transcript

Speaker: Aaron Rustebakke, Financing Consultant

Getting Your Equipment Sooner

Aaron Rustebakke: Hi, Aaron with Beacon Funding. Thanks for joining me. Today, I want to talk about why an existing business might consider equipment financing. First and foremost, you get the equipment sooner. You may not have all the cash on hand right now to purchase that piece of equipment. If you finance some or all of that equipment cost, you can get that piece of equipment into your businesses repertoire instantly and start working with it, and generating money is quicker than you would if you waited around to have all that purchasing power on hand. Plus, there's a cost associated with waiting to make that purchase and they come in all shapes and sizes, from lost contracts to outsourcing business that you could actually do yourself.

Conserve Cash On Hand

Aaron Rustebakke: Reason number 2: Conserve cash on hand. A dollar today is worth more than a dollar tomorrow. Keep cash in your bank account for things like a rainy day, payroll, operating expenses, and et cetera. Simply put, you cannot finance things like marketing costs, but you can get a manageable monthly payment on a piece of equipment. Plus, using all the cash you have on hand to purchase, a piece of equipment can make operating expenses really tight. Plus, no business wants to be equipment rich and cash poor.

Finance Both New & Used Equipment

Aaron Rustebakke: Next, you have the option next you have the option available to you to finance both new and used equipment. A quality lender will have options available for you for both. Now, terms may vary depending on age and usage of the equipment you are purchasing and some programs are geared more towards new equipment, but you should know what options are out there for you. So talk to finance consultant about what you're interested in.

Wide Credit Window

Aaron Rustebakke: Wide Credit Window is another great reason to consider equipment financing. On one end of the spectrum, we have applicants who have been in business for years and have great established personal and business credit history. On the other end of the spectrum, we have applicants with more challenged credit and don't have very much time with established business. A best in class financing partner will have options for both applicants and everybody in between. Beacon Funding's focus on wide credit window, and niche equipment means that we're able to give an approval to 7 out of 10 applicants.

Low Fixed Monthly Payments

Aaron Rustebakke: Lastly, low fixed monthly payments. Having been a business owner myself, I can't express enough how powerful fixed expenses are for a business. Knowing your operating expenses will help you budget accordingly and it will help you plan for growth. These are just a few things to consider among the multitude of reasons why businesses choose equipment financing every day.

Aaron Rustebakke: Let's talk about how equipment financing can benefit your business. Schedule a meeting with us today at beaconfunding.com/benefits.

Produced with Vocal Video