The Benefits of Financing
Wondering if financing your equipment is the right move? Connext has helped many companies finance equipment in a variety of industries. A common question is, “Should I finance my equipment?” The answer is not always immediately apparent, since you likely have many business needs competing for your attention as you consider this decision. Your Connext Financing Expert, based on years of industry experience and financing expertise, can help you make a sound decision. To help get you started, we have broken down the benefits of financing into cash flow and business categories.
Cash flow benefits:
- Cash is the life blood of any business. Properly managing this crucial element is critical to the survival and growth of any business. Determining whether or not to finance equipment can have a big impact on cash flow. Cash flow benefits from equipment financing include the following:
- Low fixed monthly payments improve cash forecasting
- Minimal fees and low to no money down
- Wide range of products allow monthly payments to match your business needs
- Bundled financing allows for soft costs like freight or installation to be rolled into your payment
Beyond the operational needs for cash, there are larger business needs to consider. Choosing the right equipment financing options suited to your business can complement your business plans and help achieve your business goals. Financing equipment can yield the following benefits:
- An additional credit reference and source is established
- Internal approval for financing may be obtained faster and easier
- Purchasing process is made easier
- Lien is only placed on equipment being financed
If you have already determined that an equipment lease or loan is right for you, there are many payment options available to consider. Knowing what options are available is one thing, but knowing which one is the best choice and then having the ability to design the right custom equipment financing solution takes industry knowledge, financing experience and an understanding of your specific business needs. Connext Financing Experts are uniquely qualified to do this for you. Frequently used financing options Connext offers include:
Equipment financing instruments:
- Capital Leases with $1 and Balloon/Fixed buyouts
- Fair Market Value and Operating Leases
- Loans, Notes and Security Agreements
- First Payment Deferments – Allows you to not pay, or defer, the first payment. This is helpful in a situation in which short term cash is tight.
- Skip, Step, Seasonal. Monthly, Quarterly, Semi-Annual & Annual Payments – Allows payment structure to follow your business. Works well with seasonal businesses that lease equipment, or those with staggered or inconsistent revenue streams.
- Direct Debit Payments – Allows for automatic payments, lessening the administrative burden.
- Early Termination and Buyout Options – Allows for flexibility down the road. Useful if future cash needs are unknown.
- FMV Purchase Options (with and without Not-to-Exceed Caps) – Offers risk reduction yet allows you to purchase equipment.
Equipment financing can include:
- Terms from 12 to 84 months (1 – 7 years)
- Soft costs included (freight, rigging, installation, startup)
- All types of manufacturing equipment
Not all of these options are available to everyone. Connext Finance Experts find funding sources and equipment lease and loan options available for you.
Who can finance:
- Commercial businesses, partnerships, sole proprietors, state and local government entities
- New businesses with owners who have solid personal credit
- Companies located in the United States and Canada
Municipal / government equipment finance:
- Offered only for state and local governments (not federal)
- $1 Purchase Option and Municipal documents, including Non-Appropriation documents
- Discounted rates due to lessor not being taxed
To see if equipment financing is the right option for you or to learn more, contact a Connext Financing Expert for a free consultation.