Being unique is what sets your business apart from the competition and makes customers stick around. But uniqueness also tends to bring a few challenges, especially when trying to get all the funding you need to succeed. When it comes to finding equipment financing that fits what you actually need for your business, traditional financing and leasing plans just don’t make the cut anymore. That’s where flexible equipment financing fills in the gap as the preferred way for you to grow your unique business.
As the need for flexibility increases throughout the industry, more and more businesses find themselves wondering what exactly these customized plans can do to help them.
Essentially, having the flexibility to create a plan that is customized to your business model takes the stress out of affording the equipment your business needs to grow and succeed, but there’s a little more to it than that. Each type of flexible financing base plan offers different benefits.
Find out what these common and customizable plans do to help you succeed.
Lower Upfront Costs
Utilizing financing breaks down the cost of equipment into manageable amounts, but a flexible plan takes it one step further. Three types of flexible plans are known for their ability to reduce upfront costs. Let’s take a look:
No Money Down
The name almost says it all. The plan structured around no money down ditches the down payment allowing you to get what you need without sacrificing your business’ liquidity.
Buy Now, Pay Later
Though a down payment may be required with this plan, you can count on the first payment being deferred for up to 6 months after the purchase date. The equipment is able to help your business generate revenue before you start making monthly payments.
Step Up Payment
Starting a plan with lower monthly payments and slowly increasing them over the course of several months or years allows you to ease into the cost of equipment. It’s typically used for newer businesses or those short on cash when the equipment is needed.
Business Plan and Cash Flow Matching
Creating a plan that fits with your business model and cash flow is one of the best ways to get on—and stay on—the road to business success. These plans are made to be tailored to your business:
Traditionally, businesses with less-than-typical cash flow can have difficulty getting approved for financing and making consistent payments. Skip payment plans offer an easy solution that doesn’t drastically affect the plan terms. During slower seasons, you can make lower monthly payments, and during busier periods, you can pay a bit more.
TRAC Lease Program
If you’re looking to finance a motor vehicle, a Terminal Rental Adjustment Clause (TRAC) allows for the most flexibility. Usually, about 20% of the price of the vehicle is shifted to the end of plan making lower monthly payments possible while giving you multiple end-of-plan options. You can easily buy the vehicle for 20%, upgrade it, or turn it in for cash. Structuring a plan like this means you can wait to see where your business is at later down the line before committing to owning the vehicle.
Speed and Ease
For many businesses, quickly getting funds for the equipment they need is what helps their business thrive. Some flexible financing plans were designed with this in mind. If you’re in a rush, consider these options:
By cutting down on the required paperwork and putting a cap on the amount available, application-only plans make it possible to get an approval within 24 hours. To qualify, you’ll typically need to be an established business looking for less than $150,000.
A pre-approval helps you be prepared to purchase before you pick out equipment. You’ll receive your maximum lease amount, monthly payment, and more. When the perfect piece of equipment hits the market, you’ll be ready to snatch it up without waiting.
No matter what flexible payment structure you decide to use when purchasing equipment, it’ll be customized to fit your business. From the monthly payments to the term length, a lender with flexible financing experience will get you set up for financing success.