Why an Unsecured Line of Credit Could Be Better than Financing Equipment
Plenty of people have seen apples fall from trees, but it was Sir Isaac Newton who first asked why. The same can be applied to business. Lots of businesses decide on financing equipment and never ask why. For many, it’s just the way things have always been done so they don’t question it. When you do, you may discover that there’s a better way, such as getting an unsecured line of credit.
Next to your building, your equipment is probably your biggest business asset. If something breaks down or you need a more efficient model, financing equipment may be necessary. This is often a huge expense. Learn why an unsecured line of credit could provide the fast business funding you need.
The Ups and Downs of Financing Equipment
The ability to lease equipment can be beneficial to a business. You need your equipment and machinery to keep your business operating. If something goes wrong and you can’t find emergency business funding, you may have to temporarily shut down production.
Financing equipment allows you to pay for the item over an extended period instead of depleting all your business cash right now. If you pay for everything up front, you leave yourself vulnerable. Unexpected events and expenses could arise and you won’t have the cash to handle it.
However, financing equipment requires extensive planning. You have to make sure you will be able to handle the long term payment schedule. Missed payments could result in collections notices or the lender taking out a lien on your assets.
The Advantages of an Unsecured Line of Credit over Financing Equipment
If you are considering equipment financing, an unsecured line of credit (LOC) could be a better choice. This is because you can payback the LOC quickly and not have to pay all the interest that piles on when you finance. Many small businesses have found success with alternative lenders, like Financing Solutions (www.financingsolutionsnow.com).
With this kind of quick business funding from Financing Solutions, you can pay for the equipment you need, own it and then pay the money back over time. Best of all, it costs nothing to put a line in place and you only pay when you withdraw money.
Since you will own the equipment, another advantage is that you can claim it as an asset on your taxes. In addition, having your equipment gives you peace of mind and allows you to focus on growing your business.
Why Your Business needs to be Flexible
Sometimes, we search outside our business for ways to grow and improve. However, often we need to look within, like simply being more flexible.
For example, flexibility is important because your target audience and how to reach them is always changing. Although you have been attracting baby boomers, you might now also have to engage millennials in order to sustain your business.
Flexibility is also vital for your business model. Continuing to do things the same way without change can strangle your business. Don’t be afraid to try something new or shake things up.
It’s also essential to have a flexible method for obtaining immediate business financing. A line of credit from Financing Solutions is your best option.