Maintaining sufficient and readily available working capital is essential for any business enterprise. Executives never know when a healthy reserve may be called upon to overcome an unforeseen operational challenge. Make your Working Capitol work for you!
Too many companies make the mistake of tying up their cash in expensive equipment purchases so that when faced with an unexpected challenge, change, or even an opportunity, the resources to maneuver are not available!
You should be protected in your ability to react to market fluctuations, as well as be empowered to take advantage of emerging opportunities! Equipment financing, as opposed to outright purchasing is the smartest choice to make in maintaining your liquidity and operational flexibility.
Pitfalls of the Technology Trap: What did you pay in maintenance and repairs last year? When you finance your business equipment, you avoid what’s commonly known as the Technology Trap. How old are your computer systems? Are you up-to-date on manufacturing advances? Businesses that utilize technology must stay on the cutting edge in order to remain competitive. If your working capital is anchored to old equipment, the world is passing you by. Your assets are depreciating, and it’s affecting your business as a whole. Equipment leasing is a solution to the technology trap, allowing for technology upgrades on a regular basis.
Tax Savings: Your regular lease expenses constitute a tax deduction. This means more working capital in your pocket from reduced tax payments or returns.
Expense Items: Lease payments are considered an expense, not a debt. This means the net worth of your business may be higher with an equipment lease, as opposed to a loan – which is viewed as a debt.
Equipment leasing carries distinct advantages! Arming your business with a cash reserve strengthens your company’s ability to roll with the punches and pounce on opportunity.
Contact Select Business Credit today and learn more about what your working capital can be doing for you.