Guide to Affording New Equipment for Your Small Business
Have you been thinking about upgrading the equipment at your small business? From computers to heavy machinery, specialized equipment helps your small business run more smoothly and efficiently, but requires a significant investment of capital to purchase.
If putting down a large sum of money for new equipment would hurt your cash flow, consider these options:
Buy Pre-owned Equipment
Buying pre-owned equipment can save you a bundle of money.
Similar to cars, a lot of equipment will remain mostly the same through the years with slight feature upgrades. Consider that it used to be standard for a car to have a tape player, then a CD player and now a USB port. What did not change is that the car needs to steer and move you from place to place.
The same goes for equipment. Think about what you truly need for your small business to be successful and then decide how much you are willing to pay for extras – if anything at all.
If you decide to purchase used equipment simply ask for a warranty should anything go wrong within the first 30-days or so.
Seek Out Government Deals
The government may be a great place to get new or gently used equipment. When they seize equipment they put it up for auction, usually at very fair prices.
Local, state and federal agencies have specific rules for the auctions, but you can often get a great deal.
Contact your local Chamber of Commerce for information.
Consider a Lease
Equipment can have a short life span and in some cases it can be a better financial decision to lease than to buy.
Leasing can ease the burden of upfront costs and a lease often comes with a solid warranty for the entire lifespan of your contract. Just be sure to review the terms and conditions with a keen eye to prevent the surprise of hidden costs in your monthly bill.
Take out a Working Capital Loan
Whether you’re still planning on buying new from the factory, or you decide to lease or seek out used equipment, the upfront cost can be a burden on your cash flow.
A great option for established business owners is to take out a working capital business loan.
With ARF Financial, you can receive approval within 7-10 business days. Collateral is not necessary for loans under $725,000 and because you’ll be receiving a real bank loan the interest is tax deductible!
Learn about the approval and payback process for working capital loans today!