Are you looking to finance the purchases of new equipment for your business? The financing you choose affects your cash flow, time, effort, and tax deductions. With all of that at stake, it can be hard to know which financing options are best for you.
Here are five reasons why businesses should choose all-in-one financing:
- Preserve Cash Flow
Trucks and heavy equipment are large outlays of cash. Using truck and equipment financing, you get the funds needed to grow and make crucial investments in your business, improving your efficiency and even profitability. By purchasing equipment with a financing agreement, you pay for today’s new equipment with your future cash flows rather than the cash in your bank account.
- Soft Costs
When you are pursuing financing, soft costs can typically be included in the financing. Soft costs are things like delivery charges, sales and use tax, or even installation and training-related costs. By rolling these costs into the financing, you are essentially getting 100% financing for the equipment. In comparison, typical equipment loans are only for the equipment’s cost and do not include these other related costs.
All-in-one financing is usually more convenient. The dealer is a trusted advisor, not just for the equipment, but on the best ways to finance the equipment and help you stay within a budget. Also, the application process can be easier and faster. There is typically less paperwork since there is no need for high credit scores or even collateral. The financing is backed by your on-going business operations and the equipment itself. Thus, all-in-one financing saves you time and effort.
- Tax Benefits
Interest paid on your financing can be tax-deductible for your business — which is another advantage of rolling your soft costs into the financing. Additionally, tax provisions state that with equipment leasing, you may also be able to write off the full amount of the equipment and not just the interest. Even better, you may be able to write-off the entire purchase in the year of the purchase, even if you continue to make payments to the lender in the following year.
- Up to Date Equipment
Another benefit to all-in-one financing is keeping your equipment up to date. One of the barriers to getting new and more efficient equipment is usually the cost. However, equipment financing gives businesses the option to get new equipment without a huge cash outlay. Through all-in-one financing, the dealer is a valuable partner who may also service the equipment, so it lasts longer. They can also help you develop a replacement strategy that makes sense for your business, so you can continue to keep up with innovation.
Take Advantage of the Benefits of All-in-One Financing
Up-to-date equipment keeps your business efficient and profitable. Benefits of all-in-one financing include better cash flow, 100% financing, tax benefits, and convenience. These benefits are leading more businesses to seek financing for their equipment purchases. Contact us to learn more about your equipment financing options.
Specialty Vehicles & Equipment Division of Navitas Credit Corp. is a leading credit company with a global reputation. Offering customizable equipment financing agreements and affordable payment plans, Navitas is your ultimate destination for purchasing all kinds of construction equipment, including trailers and trucks.