ELFA is sharing five key benefits that make equipment finance an advantageous option for small businesses:
Unlike with most traditional lenders, it is possible to arrange 100 percent financing of equipment with no down payment. This allows the business to hold on to cash, or working capital, and use it for other areas of the business, such as expansion, improvements, marketing or R&D.
A business just starting out can use equipment financing to help lessen the uncertainty of investing in a capital asset until it achieves a desired return, increases efficiency, saves costs, or meets other business objectives.
To be on the cutting edge and competitive, businesses often need access to new technology. Leases, loans and other financing arrangements enable small businesses to acquire more and better equipment than they could have without financing.
Financing equipment allows for greater certainty in budgeting by setting customized rent payments to match cash flow and even seasonal cash flows.
Certain financial products allow businesses to finance the entire cost of equipment, including installation, up-front maintenance, training and software charges, thereby packaging systems and ancillary products and services into a single solution. This makes the equipment acquisition easy to manage and frees up the business to focus on its core operations.
These are among the most compelling benefits for the financial and operational needs of startups and small businesses. For additional benefits and more information about how equipment finance equips business for success, review the content on this website, including:
Disclaimer: The information in this document is a summary only and does not constitute financial advice. Readers should obtain their own independent accounting advice that takes into account all relevant aspects of a particular lessor’s or lessee’s business and products.
© Equipment Leasing and Finance Association 2024.
