The Ultimate Guide to Time Value of Money

Check out how you can unlock the potential of compound interest by learning about the time value of money.

By Jack Piazzi| Sep 28, 2022| 490 Views
3 MIN
The Ultimate Guide to Time Value of Money

Cash is king – it allows your business to remain flexible and pays for its daily operation costs, emergencies, and even opportunities.

By investing your cash, you can put it to work to generate more revenue in the future. The sooner a person invests their money, the more time they have to accumulate more. By leveraging the time value of money, you can unlock the potential of compound interest.

Here are some resources on which can help your business by learning the rewards of the time value of money.

In this article...

  1. What is Time Value of Money?
  2. 3 Ways Financing Your Next Piece of Equipment Can Boost Your Potential Earning Power
  3. How to Invest in Your Business with Equipment Financing

What is Time Value of Money?

Time value of money is the financial concept that money you have on hand today is worth more than the same amount you have in the future. Why? Because the amount you have today can be “put to work” to generate more revenue in the future.

An equipment purchase can make a mark in your cash reserves, but you don’t have to use all your cash with equipment financing. Instead, you can conserve your savings by breaking down the purchase cost into affordable monthly payments and allows you to use your cash to reinvest into different areas of your business.

Time is money. The sooner you earn or save it, the faster you can put it to work for you.

APPLY FOR FINANCING NOW

3 Ways Financing Your Next Piece of Equipment Can Boost Your Potential Earning Power

No business wants to operate without cash. After all, the #1 reason why businesses fail is because of lack of cash. When you want consistent growth, staying liquid is key so you can reap the rewards of your money growing over time.

One thing every business owner either knows or learns is to expect the unexpected. With equipment financing, you can conserve your cash and use it to invest in other areas of your business. With a low monthly payment, you have can have enough cash to grow your business such as adding more employees, expand your marketing efforts, product development, or investing in places that generate additional profits.

CALCULATE YOUR MONTHLY PAYMENT

How to Invest in Other Areas of Your Business with Equipment Financing

While paying cash seems like the easiest solution, a cash purchase for a large piece of equipment may prevent you from strategically investing in other areas of your business.

Before you allocate your funds, consider these questions:

  • Do you have an emergency fund for unexpected expenses while growing your business?
  • What is my business’s most significant opportunity for growth?
  • What are couple quick wins that require modest cash investment?

Instead of spending all your cash in one large purchase, equipment financing spreads out your purchase cost into low affordable monthly payments. That way, you can invest your funds in other areas to maximize your business profits.

SCHEDULE A CALL WITH A CONSULTANT NOW ABOUT THE RIGHT FINANCING OPTION FOR YOU

Jack Piazzi

Jack Piazzi

P: 312.224.2587 |  ESchedule a Meeting with Me

Jack is a Senior Financing Consultant that works with business owners to help them develop their operations using equipment financing options tailored to their unique situation.



10/20/2022