Almost 80% of businesses leverage financing’s flexible options to acquire equipment, because customers benefit from financing advantages. While most businesses can afford to pay cash, forward-thinking companies prefer to finance equipment instead of placing a large, upfront cash expense on their annual books.
However, financing equipment has many advantages in today’s marketplace, but sometimes you need to share those benefits with your customer when cash is not a viable option. Americorp has developed a few reasons why financing vs. cash can close more sales for customers with budget constraints.
Some equipment has a life-cycle of three to five years. Financing allows your customer to acquire new equipment and either upgrade, replace or purchase at the end of the term.
Your customer sets the payment frequency and amount at the beginning of the financing term to make annual budgeting easier and provide a hedge against inflation.
The business maintains working capital to use in other areas of the business.
Americorp Financial offers solutions which require no down payment (or minimal amount) and can defer first payment up to six months!
Does your equipment have separate installation, annual maintenance or other soft costs? Your customer can “bundle” all of these expenses with financing – one invoice for equipment and soft costs.
Financing certain equipment can lead to annual tax benefits and deductions. (Consult with your tax advisor)
The benefits listed above are just some of the reasons why financing benefits your customer. We also have compared some advantages of a lease vs. loan on this website for your use.