You might be in a situation where you need a loan for your office technology equipment needs. When your business is in need of equipment but doesn’t have capital, you don’t have a lot of options. You will need to compare all options that are cost effective in order to keep your cash flow in order. If your choice is to finance your equipment, you can immediately get the equipment you need for your business. This means you’re spreading out the initial purchase price over a long period of time. There are several different types of financing options: loan or lease.
How Equipment Financing Works
When you are looking for office technology equipment that needs less updating such as a printer, go for equipment financing. This ensures that you buy the equipment outright. It’s very easy to qualify for equipment financing. The amount of money one is eligible to get is based on whether office technology equipment is new or used. Often, the type of office equipment used can be used to secure financing. It’s not common to be asked for any other collateral. It should be noted that these loans come with fixed interest rates of between 5-12% .
Benefits of Equipment Financing
1. You don’t have to get extra cash If you don’t have extra cash to buy office technology equipment, taking out this loan is a great way of getting what your office requires. You will do this without having to pay any of the upfront cost of the purchase.
2. There’s less documentation With traditional loans, lenders may demand to see your yearly credit score and financial history. With office technology equipment financing, lenders are usually concerned with your financial history. This is because the equipment being purchased will be used to secure the loan.
3. Tax Incentives For those who are financing office equipment technology, the maximum annual deduction is set at $1 million for 2018. This means that equipment financing is in most cases, tax deductible for small business owners.
Where to Find Office Technology Equipment Financing?
Traditional banks impose strict rules and it’s best to find small business owners for your office technology equipment. This is a good alternative for users who want to get equipment financing quickly and at a fair price. Always ensure that you match the terms of the loans with the expected lifespan of your office technology equipment. If you are going for office equipment technology that you’ll use for three years, make sure you get a three year loan deal. Short terms makes you scramble to make payments while a longer term helps you plan to make payments.
What to Consider When it Comes to Office Technology Equipment Financing
A. Always know and be ready to explain how the office technology equipment will benefit your business. B. Always organize and review your financial information before making contact with office technology equipment financiers.
C. Never assume that you will get the best terms. Always take time to compare rates and fees that are available.
D. Never submit multiple applications to various lenders. When a lender sees that you have been inquiring with other leasing companies, it raises red flags.
*Note that office technology equipment financing gives business owners with an advantage of increasing revenues. They also help your business to keep up with technology and thus help your business to be aligned with the market needs. With equipment financing, you will save money, avoid spending huge on buying machinery.
To get more information on office technology equipment financing, please call us at 619-333-1300.