How do I ensure I get a payment that fits my budget?

April 12, 2021

Making sure that your bills are covered each month by the revenue you generate is a top priority for every business balancing a monthly payment. For commercial equipment, it's no different.


Video Transcript


Speakers: . Aaron Rustebakke

How do I ensure I get a payment that fits my budget?

Aaron Rustebakke: Hi, Aaron with Beacon Funding. Thanks for joining me on this short series and how flexible financing can help you achieve your goals. Now this sounds obvious, but making sure that your bills are covered each month by the revenue you generate is a top priority for every business. Balancing a monthly payment for commercial equipment, it's no different. Luckily, there are flexible financing options available to help you achieve those goals. Here's a great example. Let's say your business needs monthly payments below a certain dollar amount. For our exercise, let's say you need $1000 payments. However, a traditional structure offers you $1200 payments for 36 months. That's $200 above your monthly budget. On top of that, putting down, more as a down payment in order to lower that financing amount would put too much of a strain initially on your business before that equipment is even generating a profit. This is where Beacon Funding's flexible financing options come into play. Instead, we could utilize a step payment. With a step down payment program, we would offset the financing costs to effectively lower your monthly payments for the bulk of your loan. In our example, you would have 6 $2000 payments, followed by 30 $1000 payments, rather than the $1200 payments for 36 months. Now I know $2000 is higher than our monthly budget. However, we can avoid that strain with a higher down payment. And it's something more bearable for a shorter term to get you to that $1000 monthly payment and acquire that equipment you need to generate profit. Plus, there's really not much different overall payment amount between the two different structures. Step payments can also work in reverse, where you have a lower payment to begin with and a higher payment later in the loan. That's flexible financing in action. Depending on your credit profile and what it is you're trying to achieve, your financing consult might utilize step payments, which I described here, a seasonal payment program or skip payments. Whatever it is you're trying to achieve, make sure to talk to your financing consultant about it. They're there to help. For more information on flexible financing options available to you, visit beaconfunding.com/businessgoals. visit beaconfunding.com/businessgoals.



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