One of the best parts of our job is that we hear the stories of business owners. How the businesses began and – even more fun – where they are going. It’s inspiring to hear the passion of these small business owners and it reinforces what makes our country the most powerful economic engine ever. But too often business owners become intimidated when it comes to the thought of financing that vision. And for many businesses, this starts with equipment.
Equipment often provides the most scalable method to grow your company – revenue-producing assets first rented and then transitioned to ownership as revenues grow and become more permanent. We’ve seen some customers move from a mini-excavator and a trailer to a fleet of dump trucks and earth-moving equipment and from a few laptops to a cooled server room. And while those success stories are fun to share, they begin with a solid finance strategy.
When you are just starting to grow, sometimes you don’t know what you don’t know. How long are you going to need the equipment? Will you have long-term business to support the equipment investment? Are you going to have the staff to keep up with the growth? These are all questions that might intimidate business owners and push them away from attaining their vision. But that’s silly. Starting with rental or short-term leasing gives you the flexibility to turn in the equipment if needed and minimize the risk of business downturn or committing long-term to assets you might not need long-term. Financing can help you minimize these business risks of your expanding vision.
Then there’s the cash. Financing allows you to have a strategy where you pay for what you use. This approach improves cash flow – the most critical financial measure for a growing company – and preserves cash balances by avoiding lumpy capital expenditures. Financing can also allow for the maximum tax benefits from depreciation and utilization of the Section 179 tax deduction (and if you don’t know what that is…talk to your tax advisor today).
To get started financing your vision, just start thinking about the type of equipment you’ll need and about how long you might need it. And as previously mentioned, if you’re not sure…that’s okay too. Then find a real equipment finance partner. Someone that understands the needs of growing small businesses and the equipment you depend on. Then work with their team to do some planning. They can help you put real numbers to the list of maybes and what ifs that float around in your head. And from that plan…you are off to the races.
At LEAF, we help businesses pay for their vision. Cool, huh? A simple, fast process with competitive financing positioned to help your business today and tomorrow. What’s your vision? Let’s talk.