As a small business owner you know the value of updating and replacing business equipment financing. It can be an expensive undertaking. If you are considering financing to make your company more viable and to make capital improvements, here are a few things to consider:
Benefits of a Small Business Equipment Loan
When you start narrowing down on the type of business equipment financing your business needs, it’s a good idea to thoroughly consider the options of leasing versus buying. Depending on your circumstances, the cost-benefit of one option may strongly outweigh the other. The chart below gives you some idea of how Working Capital Financing works versus how leasing agreements work.
Business Equipment Financing or Lease
|Payment Option||Down payment needed.||Generally, no down payment. Payments function much similar to a rental.|
|Terms of Ownership||You own legal title to the Equipment.||The lease holder may be allowed to purchase the equipment at the end of the term of the lease, but lessor usually holds title to the equipment.|
|Collateral Required||If going for a traditional loan, your credit worthiness determines if a business loan may require current or fixed assets for collateral. Online financing does not require collateral.||The collateral is usually the leased equipment needed to secure the transaction.|
|Assets Eligible to Borrow Against/Finance||Financing can be used to pay for a broad range of capital needs.||A “Master Lease” acts as an umbrella for the financing of equipment outlined by schedules to the Master Lease.|
|Tax Incentive or Tax Deduction under Section 179 of the IRA Tax Code||Tax incentives are larger for purchasing office equipment, but there are some limits.||Tax deduction can be up to 100% as an operational expense.|
Fast Capital 360 works with a wide array of small businesses. Funding for your business is available in amounts between $5,000 and $2 million. Applying for online funding is uncomplicated: one page applications that are easy to navigate, safe and secure. Our quick decisions—within hours not days or weeks— help you to acquire and replace the business equipment financing you need without disturbing your cash flow.
For more information on why Fast Capital 360 is the best choice for your small business, contact us today at 800-735-6107.