Equipment Financing can save You Money. Here’s how.

Are you hesitating to purchase that new equipment because you’re unsure of the effect the cost of borrowing will have on your business? In some cases, financing your equipment purchase may actually save you money.

First consider inflation. Rather than looking at inflation as an increase in the cost of goods and services, think of it as the devaluation of money. Under inflationary pressures, $1000 today buys more than $1000 a year from now. As inflation takes place, your spending power decreases. When you finance an equipment purchase, as money value decreases the cost of paying the lease or loan reduces. This is assuming you raise the price of your services according to the inflation rate. The payments actually use up a decreasing portion of your income, costing you less.

Secondly, properly selected new equipment reduces operating costs. Sometimes it’s because the new equipment performs task more efficiently. It may also allow for revenue producing activity that was not possible before the acquisition. Other times the new equipment might significantly reduce energy costs.

Spreading out the cost of the equipment over time allows your business to realize these savings immediately — rather than waiting for them to recover the initial outlay of a cash purchase. Paying cash is not always less expensive than borrowing to acquire assets.

I am a Finance Specialist with Starcade Capital. I help new, credit challenged, and established businesses by funding their heavy equipment purchases. I can also provide working capital from the equity in their existing equipment. Contact me at Starcadecapital@gmail.com or 585–455–2197 for more information.