Why Businesses Should Choose All-in-One Equipment Financing

by Specialty Vehicles & Equipment Division of Navitas Credit Corp.
(Hatfield, PA, United States )

Why Businesses Should Choose All-in-One Equipment Financing

Are you looking to finance the purchases of new or used equipment or vehicles for your business? The financing you choose affects your cash flow, time, effort, and tax deductions. With all of that at stake, it can be hard to know which financing options are best for you.

Here are five reasons why businesses should choose all-in-one equipment financing:

1. Preserve Cash Flow

Trucks and heavy equipment typically require large outlays of cash. Purchasing commercial trucks and equipment with affordable financing, you get the funds needed to grow and make crucial investments in your business, improving your efficiency and even profitability. By purchasing equipment with a financing agreement, you pay for today’s new or used equipment with your future cash flows rather than the cash in your bank account.

2. Soft Costs

When you are pursuing financing, soft costs can typically be included in the financing. Soft costs are things like delivery charges, sales and use tax, installation, supplies and training-related costs. By rolling these costs into the financing, you are essentially getting 100% financing for the equipment. In comparison, typical equipment loans are only for the equipment’s cost and do not include these other related expenses.

3. Time-Saver

All-in-one financing is usually more convenient. The dealer is a trusted advisor, not just for the equipment, but on the best ways to finance the equipment and help you stay within a budget. Also, the application process can be easier and faster. There is typically less paperwork since there is no need for complex loan structures or
even collateral. The financing is backed by your on-going business operations and the equipment itself. Thus, all-in-one financing saves you time and effort.

4. Tax Benefits

Interest paid on your financing may be tax-deductible for your business — which is another advantage of rolling your soft costs into the financing. Additionally, tax provisions state that with equipment financing, you may also be able to write off the full amount of the equipment and not just the interest. Even better, you may be able to write-off the entire purchase in the year of the purchase, even if you continue to make payments to the lender in the following year.

5. Up to Date Equipment

Another benefit to all-in-one financing is keeping your equipment up to date. One of the barriers to getting new and more efficient equipment is usually the cost. However, equipment financing gives businesses the option to get new equipment without a huge cash outlay. Through all-in-one financing, the dealer is a valuable partner who may also service the equipment, so it lasts longer. They can also help you develop an upgrade strategy that makes sense for your business, so you can continue to keep up with innovation.

Take Advantage of the Benefits of All-in-One Financing

Obtaining the right equipment solutions keeps your business efficient, profitable and growing. Benefits of all-in-one financing include better cash flow, 100% financing, tax benefits, and convenience. These benefits are leading more businesses to seek financing for their equipment purchases. Make sure you research your equipment financing options to ensure you’re choosing a plan that works best for you.

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