Finance & Lending

 

10 14 2013

10 14 2013

3 Advantages of Financing Over Purchasing Equipment

Today, many businesses are leasing their equipment and machinery rather than purchasing it on their own. Equipment lease financing is a popular solution for general contractors, restaurants, medical offices, repairmen, IT services, hair stylists, and much more because of the benefits it provides small business owners. The following advantages leasing equipment has over purchasing makes it an important option to consider, especially in industries where having up-to-date technology can make or break business success:

Lower payments

Purchasing technology with cash up front could leave a big hole in your budget. Your office could be left scrounging for weeks to make up for the payment. Office supplies, employee hours, or other expenses might be negatively affected, which can lead to a host of over issues.

Alternatively, leasing equipment allows companies to set a payment plan that works with their budget. Because many leasing companies offer 100 percent financing with no down payments, working capital can be preserved and monthly budgets stay consistent. You can hang onto your monthly profits and use them to reinvest into your business.

Also, by anticipating exactly how much they’ll be paying each month – even with the addition of new equipment – lessees have the benefit of cash forecasting. Budgets can be accurately assessed without fear of unknown costs in the future. Forget about the rainy day fund; upgrades, repairs, and future technology acquisitions can easily be worked into your budget.

Less risk

Technology depreciates. Whether it’s medical equipment, computers, construction tools, printing gear other equipment your business utilizes, technology becomes outdated fast. Some products might be beefed up with enhanced features, while others are outright replaced by newer technologies. A cash purchase runs your company the risk of owning dated or obsolete technology. You’ll face the question of selling for a loss or bearing with the outdated products, which places many a small business owner between a rock and a hard place.

With the option of equipment leasing, a small business can avoid that question altogether. Short-term leasing means you can upgrade quickly, keeping you current with the latest in the industry.

Using outdated equipment can affect your sales and contracts. Patients may lose trust in doctors who use outdated machines or devices, rather, instead of turning to those with the latest technologies. Leasing gives business owners the option of upgrading fast and acquiring new technologies as soon as they hit the market.

More options

Using limited funds for a cash purchase could send you shopping in the bargain section. It might mean only half-furnishing your restaurant’s kitchen, or partially equipping your construction team. Limited investing could debilitate your company’s progress, causing you to lose out to your competition.

Equipment financing keeps many doors open. A wide array of new and used products are suddenly within reach. With leasing, investing fully in your business is much more affordable, bringing your product to its full potential.

If you think your company could benefit from equipment leasing, contact National Funding for information on products and leases. National Funding, a small business lender, provides equipment financing to over 100 different industries.

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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.

 

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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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