07 27 2016

07 27 2016

Leasing your way to your next big profit

Landing that major new account or making the big sale that cushions your retirement is the dream of every small business owner. While these might be the end goal you’re working toward, you shouldn’t sacrifice other more incremental ways to save money and trim overhead to improve your margins. One surefire way to cut costs and still grow your business is to take advantage of the benefits available through leasing equipment.

Regardless of the size of your company, leasing equipment lets you avoid forking over a hefty portion of your budget, allowing you to allocate those resources to more important aspects of growing your business, like marketing or purchasing more materials. Increasingly, companies of all sizes and industries are capitalizing on the many benefits offered by leasing equipment.

The construction industry, in particular, has leaned upon leasing equipment. A recent Purchasing.com survey of more than 71,000 CEOs, managers and professionals from across a range of industries found that construction owners overwhelmingly said their favorite financial option was equipment leasing. At 58.6 percent, financing equipment beat out 27.6 percent who said purchasing, 6.7 who preferred renting and 7.1 percent who held no preference.

There are many great reasons construction owners are choosing equipment leasing equipment to find their next big profit.

Reducing equipment downtime
Purchasing equipment can be a major cost burden, especially for smaller businesses that operate on razor-thin profit margins. Without outside financing help, it can take months or even years to save up enough capital to purchase the crucial equipment necessary to take your small business to the next level. Further, once the machinery is purchased, you’re responsible for replacing it if it should break down or need repairs.

Even the best-maintained machines being operated with the highest-skilled workers have a tendency to suddenly go kaput at the worst times possible. A broken crane or busted cement mixer can lead to significant downtime, sending a disruptive ripple through the entire schedule. Suddenly you’re paying workers to stand around. Then the project deadline needs to get pushed back, leading to more cost overruns. Without easy access to replacement equipment or business financing, malfunctioning machinery is nothing more than dead weight on a job site.

Writing in LinkedIn, construction management consultant Paul Netscher said frequent breakdowns of equipment are one of the biggest reasons a construction project ends up behind schedule. It can be tough to turn a profit on the job when faced with constant equipment downtime. By leasing equipment, you don’t have to worry about dipping into different department’s budgets to stay on schedule. With same-day approvals and no down payments necessary, leasing equipment lets businesses in any industry, from construction to dental to offices, stay up and running when the unexpected arises.

Make accurate budget forecasts
Projecting the various line-item costs on your annual budget is a never-ending task of updating and adjusting the actual numbers as they come in. Unfortunately, unexpected events arise that can derail plans and create problems when it’s time to pay vendors.

Equipment leasing offers flexible and consistent payment plans so you can keep track of your financial obligations. With seasonal, quarterly and skip options available, you gain more control and precision when drafting your budgets, allowing you to stay on track to reach your business goals.

Seamless Scalability
When the day finally comes and new orders start streaming through the door faster than your current production capabilities can handle, you need to be able to rapidly respond, adapt and grow. If you’re unable to quickly scale operations to meet an increase in demand, it’s impossible to reach the key milestones necessary to grow the business. And all too often, many times you only get one shot at surfing that wave of expansion into the sunset. Once it’s gone, it’s not coming back.

Leasing equipment provides greater opportunity for maximizing your current resources so you can focus on the other important tasks of scaling operations such as hiring new workers, buying more office space and building up a market presence. With virtually no limitations on types of equipment, you can get the tools you need to seamlessly scale operations and turn a small business into a big one.

Full financing options
Trying to obtain a bank loan to purchase expensive equipment and machinery for your small business can be frustrating. There are piles of application forms, a maze of red tape and, ultimately, the very real possibility that the bank will deny the request or only fund a portion of your capital needs.

Thankfully, obtaining equipment leasing through an online lender means there’s no cumbersome and complex applications to sift through, and a greater chance of having your request approved. Furthermore, these lenders offer businesses the option to defer payment for up to 90 days, giving companies more options for the funding source.

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General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

 

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By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

  
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