You’ve selected the equipment you want/need, now how do you pay for it?

The most important investment a business can make in new equipment may be the time spent determining how to pay for it.

Items to consider:

  • Intent to own or lease equipment
  • Your financial situation
  • Your budget
  • Maintenance practices
  • Future technological advances

Available Payment Alternatives

“Cash is King”

Very few organizations have the cash to buy everything and new equipment may not be the best use of your cash. Paying with cash has an immediate impact on your cash flow by diminishing your reserves. A depletion of your liquid assets may affect your credit worthiness.

Cash should be used for:

  • Items that cannot be financed
  • Income generating investments since you pay with today’s dollars at today’s value
  • Cash-and-carry type products
  • Short-term or other operational needs

Bank debt

A traditional bank loan may impact your available credit and dip into your cash reserves. Not only that, but banks may not allow or offer 100% financing of equipment.

Would you pay your employees’ salaries 3 years in advance for the work that they will perform? No, you pay employees as they perform.

The same principal holds true with leasing; Leasing allows you to pay for the equipment as it produces results and generates income for you.

Equipment finance company lease/loan

This may be the best alternative due to the many advantages it offers

  • Improves cash flow by allowing you to pay for the equipment as you use it to generate income for your business.
  • May lower the total cost of the equipment
  • Allows for flexible payment options, structured to match your payments to your budget
  • Seasonal programs
  • Payment deferral programs
  • If budgets are tight, you can still acquire needed equipment now
  • Establishes a new source of credit/keeps existing bank lines open

Smart financing weighs the interest-saving advantages of cash with a tailored product that provides superior long-term financial advantages.


You select the equipment – we provide the financing. We offer sound guidance, flexible structuring and competitive financing. Call today to find out more.