What are the best options for equipment financing?

I want to acquire some equipment related to my businesses. Where can I find out what my best options are?

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In general, traditional lenders can finance up to 80% of the total purchase price of business equipment. Business owners require strong credit to obtain an equipment loan. Equipment Leasing is another option to acquire equipment. Learn more about equipment financing options here https://goo.gl/XhQFjP

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Part of the answer to this question lies in the concept of "How much of your money do you want tied up in equipment versus other business areas you may want to invest your money into?". As a general rule of thumb, equipment purchase is quite capital intensive and restricts the ability of a company to grow or expand. Also, there are tax considerations which you should consider regarding equipment purchase versus leasing options.

I would advise you to consult with a good business tax expert to obtain the tax considerations you may need to deal with and also determine where and how you want to spend your money to reinvest back into the business. The Association of Retired Business Executives may be a good source of information for you regarding this subject. Talk to your competitors and see what they say or did (sometimes they have a very good ideas which may help you). Develop a revenue and profit projection for your business and assess how much income you will need to achieve your plans or goals.

Also, talk to your banker to find out what they are willing to consider regarding financing or leasing options for your business. You will require your business plan forecast assessment for the banker.

By gathering all this information, this should provide you with a good picture of what your equipment financing options are. As a general concept, I've always said that having multiple options is a good thing. The more you can develop and know what limitations you have, the better decisions you can make at that time.

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