This video was made by Jack Piazzi, a Senior Financing Consultant at Beacon Funding. As a Financing Consultant at Beacon Funding, Jack works with business owners to help them develop their operations using equipment financing options tailored to their unique situation.
In this article...
- How Do You Increase Your Potential Earning Power with Equipment Financing?
- 3 Reasons Why Equipment Financing Can Improve Your Potential Earning Power
- Learn How Equipment Financing Can Help Your Business
How Do You Increase Your Potential Earning Power with Equipment Financing?
Time Value of Money is the concept that money you have on hand now is worth more than the identical sum you are due to receive in the future. That is because of the potential earning power. When you’re approved for equipment financing, your access to capital increases and so does your purchasing power.
Reap the rewards of your money growing over time
Equipment financing can help you acquire equipment while still freeing up cash to invest in other areas of your business. Wouldn’t it be nice to get essential equipment without having to say no to marketing, adding employees, or expanding to that next location? Beacon’s financing consultants can help you find the right financing option that helps keep your cash in hand.
3 Reasons Why Equipment Financing Can Improve Your Potential Earning Power
1. A Dollar Today Is Worth More Than A Dollar Tomorrow
No business wants to run without cash. With equipment financing, you can use your money to improve your business. However, if you don’t have cash today, then you’re missing out on ways to help your business grow tomorrow.
You will always have to spend money in different areas. Don’t view that as a bad thing – view that as investments in more areas of your business. It also allows you to maintain available liquidity for things such as:
- Operational expenses
- Payroll
- Marketing
- Product development
These investments help you generate additional profit for your growing business while also allowing you to stay liquid.
2. Staying Liquid is Key for Growth
Adding more equipment doesn’t have to leave you without any cash. Instead, with the right financing option, you can keep your savings, so you have something in the bank when you need it the most.
No matter how well thought out your business plan is, things don't always go as planned when it comes to allocating your funds.
One thing every business owner knows or learns is to expect the unexpected.
The #1 reason why businesses fail is that they run out of cash. If you do not have any money in the bank, you won’t have the ability to operate your business effectively. Financing helps you maintain cash in your bank instead of using it all up at once.
3. Equipment Financing Helps Businesses Expand While Reducing Risk
So, how do you prevent your business from running out of cash? One way is to know how much your expenses are.
An effective way is with predictable monthly payments. A fixed payment structure by design helps you spread that risk out over a longer time. They allow you to avoid the risk of running out of money all at once.
Here’s a real-life example: There was a business owner who needed $10K in repair costs after their truck broke down. Unfortunately, he didn’t have the liquidity to afford the repairs. With the right financing option that worked for him, Beacon Funding was able to help him out with a Working Capital loan so that he could take care of the repairs. It’s safe to say he learned his lesson, and he now has funds saved up for next time.
Ready to Increase your Potential Purchasing Power? Learn How Equipment Financing Can Help Your Business
Talking with a financing consultant is a great way to see how equipment financing can help you keep more cash in your hands.
Schedule a quick talk with an equipment financing expert at beaconfuding.com/talkwithus