Most business owners look for the best deal when adding equipment to their business; a quality product at a reasonable price. Many business owners are turning to used equipment in the face of these hard economic times looking to cut costs and increase profits. Studies have shown that businesses who maintain or expand their businesses during an economic slowdown gain market share and emerge stronger when a recession ends. Savvy business owners are positioning themselves for inevitable economic recovery by increasing their product offerings and efficiencies now. Buying used equipment is a viable option for a number of reasons:
- New equipment may have a manufacturing lead time of 3-6 months where used equipment is available immediately.
- A knowledgeable dealer can often locate equipment that is close to the manufacturer’s facility allowing you to sidestep potential shipping costs.
- A vendor can inspect a pre-owned machine first-hand while it is still installed and running product at its original place of business. This allows the vendor to see everything the machine does, what parts it has and its overall condition.
- Used equipment can save customers well over half the price of new models, sometimes for machines that are practically brand new.
One of the problems with acquiring used equipment is that most banks will not finance used equipment or are more stringent on financing used equipment asking for 50% down or additional collateral. At AFP, we can provide 100% financing on your used equipment with only 1-2 payments in advance, up to a 5 year term and no additional collateral requested. Simply fill out our one-page application and we will take care of the rest!
Today, more than 80% of all U.S. corporations lease some or all of their equipment. Even consumers are catching on, leasing more automobiles than ever before. Whatever your business, whatever your strategies and objectives, leasing just makes more sense than buying. Leasing gives you financial flexibility, helps you meet changing technology needs quickly and easily, and offers tax advantages, too. Equipment leasing is a powerful tool that saves you time and money and helps you gain the competitive edge. Some of the main benefits to equipment leasing include:
- Conserve cash for when you need it most
- Convenience- fill out a simple one-page application
- Quick turnaround time- you will typically have an answer in 24-48 hours
- 100% financing available- include installation, shipping and other soft costs a bank will not finance
- Tax advantages- under IRS Section 179 you can write off up to $250,000 in equipment purchases in 2009
- Off balance sheet financing- under an operating lease, you do not show the leased asset as an asset and liability on your balance sheet and can simply write off your monthly payments lowering your taxable income
- Fixed payment- your payment never changes throughout the lease
- Converse bank lines- Your existing lines of credit and borrowing availability are left untouched and ready to use for operational and short-term financing needs
- Used equipment- many banks will not finance used equipment, leasing is a great option for acquiring used equipment
- Flexible payment options- if you have a seasonal business, leasing can set payment terms that match your business trends
- No blanket lien- leasing only takes the leased equipment as collateral and does not file a blanket lien on your business or personal assets like a bank will
- Less money down- a lease generally asks for 1-2 payments down versus a bank who will request 10-20% down
Leasing provides many benefits to business owners and is already widely used across the World. Contact AFP to learn more about equipment leasing and how to get started!
Welcome to AFP’s blog! Service… the way it used to be. This is the tagline you will find on AFP’s website, www.financewithafp.com. We are a full-service finance and lease company ready to help you obtain the financing you need to grow your business. With all of the lending limitations banks are experiencing, AFP is here to help you get the financing you need. We want to understand your needs and will find a solution to help you acquire the equipment you need for your business. The recession is ending and it will follow with an economic upswing. Now is the time to prepare. Do you have the equipment needed for those jobs that are coming your way? Obtaining the necessary equipment to start or expand a business can be expensive and, for many, cost prohibitive. Business owners know that the value of equipment doesn’t come from owning it, it comes from using it. Leasing is a great way for businesses to put equipment to use quickly, with minimal upfront costs. Contact AFP to start the process today!
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