If you had to buy your next personal vehicle with cash on hand, what kind of vehicle would you drive? How would your options open up if you had access to financing?
Your business is no different of course. Affordable monthly payments can put a wider choice of better equipment and technology on the table. Rather than paying with cash reserves, businesses that leverage financing can pay with cash flows – cash flows that are strengthened by the equipment you’re acquiring.
So with that mind, the next question is this:
Can financing also help you scale growth by allowing you to obtain more revenue-producing equipment for your money?
For a lot of businesses, that’s a big yes. In fact, a recent survey of more than 13,000 small business owners (revenues under $15 million) indicated that 83% were able to purchase more equipment than they had originally planned thanks to a monthly payment that aligned with reasonable budget expectations.
Here’s the breakdown:
- 18% increased their purchase by $5,000-10,000
- 23% increased their purchase by $10,000-25,000
- 15% increased their purchase by $25,000-50,000
- 21% increased their purchase by $50,000-100,000
- 12% increased their purchase by $100,000-$150,000
- 6% increased their purchase by $150,000-250,000
- 5% increased their purchase by $250,000 or more
If equipment can be a vehicle to help you drive more revenues or enhance productivity in a way that fattens the bottom line, an equipment finance plan might be in order.
We can help. LEAF helps small businesses make equipment affordable.