How To Use Equipment Financing To Stimulate Your Cash Flow

There are going to come times when your business experiences a disruption with its cash flow. When this happens, it can prevent you from taking care of crucial expenses related to keeping your company operational. To avoid a catastrophe, you need to learn what alternative financing solutions are available to your business. A service like equipment financing, for example, can be beneficial to explore when you need to maintain better control over your budget. Look over these details to discover how you can use this form of financing to your advantage.

What Is Equipment Financing?

Financing your equipment is a straightforward and practical decision to explore. For one, almost all businesses rely on some form of machinery or tech in order to operate. Additionally, this machinery can usually be expensive and it is not always possible for a business owner to pay out of pocket for vital equipment. With this alternative financing option, you can spread payments for equipment out over a period of time, allowing you more control over your budget. The less you spend on the initial investment, the more working capital you have available to you.

How You Benefit From Financing Your Equipment

Control over the budget is one of the biggest perks to expect from this solution, but it is far from the only advantage. Equipment financing also offers you the opportunity to invest in advanced tech that you otherwise wouldn’t be able to afford. Access to the latest equipment can help your company meet the many demands of your industry and deliver exceptional results to your clients. What’s more, there are plenty of options available with your finance agreement, allowing you the ability to control your arrangement in a way that works for your company.

Considerations With Financing Equipment

As with almost any financing option, you need to think over a few points before you make your final decision. While the control over your budget can be appealing, the fees and interest rates associated with the financial service might be more than you’re willing to deal with. What’s more, your business might not use any physical equipment to maintain operations. If this is the case, then your organization might not qualify for this specific kind of financing. Still, weighing out the advantages and setbacks might help you realize it is a good fit for your needs.

There are many ways to go about stimulating your company’s cash flow. Take a moment to look over the details of equipment financing and determine whether this is the right solution to your capital troubles.

Comments

Post a Comment

Popular posts from this blog

30-year Commercial Money? Yes!

W. Karl Baker, CPA When discussing commercial financing needs with prospective clients, one of the first things we get asked all the time is “What’s the rate?”  That depends on a lot of factors, such as property address, the borrower’s credit score, net cash flows from the lease agreement, leverage and a few other factors.   We also remind clients that “rate” is important but is not always the most important factor if cash flow is the goal. It’s certainly not the only factor to evaluate.   We also are asked, “What’s the term of your notes?”  Many people are surprised that it is possible to obtain 30-year commercial money, especially if their only experience is what banks offer.  So there’s usually a follow-up question when we tell them about our 30-year fixed rate commercial mortgages:  “Is it really FIXED for 30 years, and it’s a commercial note?”, said with some astonishment!  Our response is “YES!  You really can get a 30-year fixed-r...
Read more

Utilizing the BRRRR Strategy for Developing Your Real Estate Portfolio

In the dynamic realm of real estate investment, success often relies on strategic methods that enhance returns while mitigating risks. A popular approach among astute investors is the BRRRR strategy: Buy, Rehab, Rent, Refinance, Repeat. This effective framework enables investors to build a strong real estate portfolio, leverage property value appreciation, and utilize financial tools like the Debt Service Coverage Ratio (DSCR) loan. This article delves into how combining the BRRRR strategy, rehabilitation, and DSCR loans can propel investors towards their financial objectives, supported by Infinity Commercial Capital’s tailored financing solutions. The BRRRR strategy outlines a structured approach that comprises several essential steps: Buy : Identify properties with high potential for appreciation and cash flow. Acquire these properties at a favorable price, often through distressed sales, auctions, or off-market deals. Rehab: Increase the property’s value through strategi...
Read more

How To Pick the Right SBA Loans

This Small Business Administration is designed to help companies with fewer than five hundred employees stay in business and help the economy thrive. While you can find informational resources through this administration, most people are more familiar with the financial help the SBA offers. SBA loans are divided into a couple of different programs, each with specific goals. The two most familiar are the 7(a), or general business loan, and the CDC/504, or real estate loan, and choosing the right one for your business needs can be the best way to grow and thrive. What Is the CDC/504 Program? The major differences between the SBA loan programs are how you can use the funds from each one. With the CDC/504 program, you can purchase equipment and owner-occupied commercial property with the help of a Certified Development Company. These are typically larger amount loans than other SBA programs, from $125,000 and $2 million with a ten percent down payment, and cannot be used for working capita...
Read more