This video was made by Aaron Rustebakke, who owned and operated his own business for 8 years before moving into equipment financing in 2019. As a Sales Supervisor at Beacon Funding, Aaron works with businesses to help define their goals and craft the right flexible financing plans to meet their needs.
Can Flexible Financing Make Your Equipment More Affordable?
It all starts with a quick conversation about your goals. Once we understand your needs, we can suggest the right financing plan to help you achieve your business goals!
Click here to explore your options: www.beaconfunding.com/businessgoals
Apply for financing: www.beaconfunding.com/apply
Thanks for joining me for this short series on how flexible financing can help you achieve your business goals. If you missed our first video, check out “How do I get the ‘best deal’ for my situation?” to see my top tip for acquiring financing. There are more videos yet to come, so keep checking back to learn how flexible financing can help you get equipment on the right terms for your business.
Monthly Payments Your Business Can Afford
Many of you asked, "How do I get an equipment financing payment I can afford each month?" Ensuring your bills are covered by the revenue you generate each month is a top priority for every business. Balancing a monthly payment for commercial equipment is no different.
When shopping for equipment, tools like equipment financing calculators can provide an excellent initial monthly payment estimate. However, what do you do when the estimate looks like it may fall out of your budget? Luckily, there are flexible financing options available to help you still achieve those goals.
When you're analyzing affordability, don't shy away from talking with an expert. Unlike traditional lenders, Beacon Funding's team has equipment expertise which allows us to be more flexible with our financing plans. Discussing your business goals can result in opening up more options to acquire equipment comfortably.
Ready to see flexible financing in action?
Here's a great example: Let's say your business needs monthly payments below a specific dollar amount. For our exercise, let's say you need $1,000 payments, but a traditional structure only offers you $1,200 payments for 36 months. That's currently $200 above your monthly budget. A quick solution could be putting money down upfront to lower the payment.
The Problem: In some cases, coming up with a larger down payment can put too much of a strain initially on your business. Especially before that equipment is even generating a profit, this is where Beacon Funding's flexible financing options come into play.
Utilize a Step Payment Program
The Solution: One option is to utilize a step-down payment program. Unlike a traditional financing structure, where the payment is the same each month, step-down payments are higher upfront and decrease over time. This option allows us to offset the financing costs to effectively lower your monthly payments for the bulk of your loan.
The Numbers: According to the graph, if we apply step-down payments to our example, you would have 6 payments at $2,000, followed by 30 payments of $1,000. Rather than $1,200 payments for 36 months.
The Benefit: Though $2,000 is still higher than the monthly budget; it helps avoid that strain of a higher down payment. Instead of needing to come up with the initial cash, it creates a sustainable short-term alternative to get you to that $1000 monthly payment and acquire that equipment you need to generate profit. Plus, there's not much different overall payment amount between the two other structures.
Step payments can also work in reverse, where you have a lower payment to begin with and a higher payment later in the loan. That's flexible financing action!
You Don’t Need to Be an Equipment Financing Expert.
We've only scratched the surface on what flexible financing options are available. The key to unlocking the right program for your business lies within that initial discovery call with your financing specialist. Depending on your credit profile and what you're trying to achieve, your financing consultant can help get the right payment for your business.
They may recommend a step-payment program, as described here, or seasonal payment program or skip payments programs. Your rep will strive to find the flexible financing program that's right for the ups and downs of your business.
Friendly and Convenient Financing Guidance
Whatever you're trying to achieve, make sure to talk to your financing consultant about it. They're there to help. To learn more about flexible financing options available to you, visit www.beaconfunding.com/businessgoals