When it’s time to buy new equipment for your business, you might ask yourself: Should I pay with cash or finance it?
Some people say paying cash is always better. Why? Because you don’t have to pay interest. That sounds smart at first, but it’s not always the best move, especially when you’re trying to grow your business.
Many business owners use their savings or business profits to buy equipment. They think it’s the safest way. But if they don’t have ample cashflow, that choice can cause trouble later. Using all your cash at once can leave you unprepared for unexpected expenses.
- What if a machine breaks?
- What if you need to hire help fast?
- What if a great new opportunity pops up?
If you’ve already spent all your money, you might not be ready. That’s where equipment financing can help.
- Equipment Financing Can Help Your Business Grow Stronger!
- Six Reasons Why Equipment Financing Makes Sense
- How to Know if Equipment Financing is Right for You
- Get Fast & Affordable Financing with Beacon Funding
Equipment Financing Can Help Your Business Grow Stronger!
Let’s say you buy some equipment and pay cash up front. Now, most of your money is gone. If your business suddenly needs repairs, more staff, or has a slower sales month, you might not have enough money left to cover it. Even worse, you might miss out on new chances to grow because you don’t have the money to take action. That’s a tough spot to be.
Keeping some cash on hand helps your business stay ready for anything. Equipment financing means you borrow money to buy the equipment you need. Instead of paying all at once, you make smaller monthly payments. This way, you still get the tools you need without emptying your bank account.
See how affordable your next piece of equipment can be with Beacon Funding’s equipment financing calculator.
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It’s a smart choice for many small and growing businesses. Let’s look at why.
Six Reasons Why Equipment Financing Makes Sense
Save Your Cash for Other Needs
When you finance equipment, you don’t have to use all your cash. That money stays in your account and can be used for other important things.
Running a business comes with surprises, good and bad. You might need to fix something, buy more products, or pay extra workers. If you’ve spent all your money on equipment, you won’t have anything left for these needs.
Financing helps you stay ready for whatever comes next.
Easier to Manage Cash Flow
Paying a large amount all at once can be hard. It can throw off your budget and make planning tricky. But when you finance equipment, you pay a small amount each month. It’s easier to plan ahead. You’ll know exactly how much you need to pay and when. This makes managing your money simple and stress-free.
SEE MY MONTHLY PAYMENT
Want to know how much your monthly payment on equipment financing might be?Use Beacon Funding’s equipment financing calculator to find out.
Stay Ahead with Better Technology
Technology changes fast, especially in our current digital era. What’s new today might be old next year. Equipment financing helps you get the latest tools and machines now, without waiting to save up. This means you can work faster, serve more customers, work better, and make more money.
Instead of settling for old or used equipment, financing lets you upgrade when needed.
Tax Benefits and Financial Flexibility
Did you know financing equipment might help with your taxes? Depending on your financing plan, you could either deduct your lease payments or depreciate the value of the equipment using Section 179 to save a lot of money over time. Both options can help you save money on tax bills.
CALCULATE YOUR POTENTIAL TAX SAVINGS
Be sure to talk to a tax expert to see how this works for your business.
No More Old Equipment
Many industries advance rapidly, due to which equipment becomes outdated quickly. When you pay cash, you own the equipment. That sounds great, but what if it stops working or becomes outdated? Now, you’re stuck with it. But equipment financing gives you the options to upgrade to something better, return or replace old machines, and lease-to-own options. This gives your business more flexibility to grow and change when needed.
Want to learn more about lease-to-own? Check out our guide to see if it’s right for you.
Grow Your Business Faster
With financing, you don’t have to wait months or years to save money. You can get the equipment you need now. That means you can do more work, finish faster, improve quality, and even take on bigger jobs. All of this helps your business grow sooner and establish business credit. And when your business grows, so do your profits.
How to Know if Equipment Financing Is Right for You
Still not sure? Ask yourself these questions:
- Will I have enough cash left after buying equipment?
- Will this equipment help me make more money or work better?
- Can I afford monthly payments?
- Do I want the option to upgrade later?
If you said yes to most of these, equipment financing could be a great choice.
Get Fast & Affordable Financing with Beacon Funding
Getting equipment is not the same for every business. Some businesses may choose to pay cash, and that’s okay. But more and more smart business owners are using equipment financing, and you can too.
This will help you:
- Keep cash in hand
- Upgrade faster
- Lower the risk
- Stay ready for growth
It’s all about what helps your business succeed.
Beacon Funding has been helping businesses get the equipment they need since 1990. We approve 7 out of 10 applications and offer flexible financing solutions for many industries.
If you're looking for an easy way to get new equipment without breaking the bank, Beacon Funding can help.
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Final Thoughts
Choosing between cash and financing is a big decision. While paying cash might seem simple, it could leave you short on money when you need it most. Financing can give your business the tools it needs today, while keeping your money safe for tomorrow.
If you're planning your next equipment purchase, think about equipment financing. It’s a smart move that could help your business grow stronger and faster.