The Benefits of Equipment Finance

Benefits of Equipment Finance

Why do businesses ranging from mom-and-pop operations to Fortune 100 companies finance their equipment? It’s because of access to a wide range of benefits. With equipment financing, you can:

Get 100% financing with no down payment Unlike requirements of most traditional lenders, you may be able to arrange 100 percent financing of equipment with no down payment. This is key if cash flow is a concern to your business.
Maintain cash Equipment financing is a source of funding that lets you hold onto your cash, or working capital, so it can be used for other areas of your business, such as expansion, improvements, marketing or R&D.
Manage risk Equipment financing can help mitigate the uncertainty of investing in a capital asset your business needs until it achieves a desired return, increases efficiency, saves costs or meets other business objectives.
Hedge against inflation Equipment financing may hedge inflation risk because instead of paying the total cost of equipment up front or with a large down payment in todays dollars, the stream of payments delays your outlay of funds. In addition, either a lease or loan can lock in the rates that exist on the date of the closing. In other words, the finance company absorbs the devaluation of your payments over time due to inflation and other financial risks.
Plan expenses for cash flow and business cycle fluctuations Financing equipment helps maintain cash flow and greater certainty in budgeting by setting customized rent payments to match cash flow and even seasonal cash flows.
Keep up to date with new technology Leasing, loans or other financing often enables you to acquire more and better equipment than you could have without financing. Certain leasing finance programs can also allow for technology upgrades and/or replacements within the term of the lease contract.
Address tax considerations Tax-oriented leases should produce lower rents since the lessor retains title and depreciation. A tax-oriented lease is a transaction that includes the value of tax benefits. Conversely a conditional sale or loan enhances tax benefits of higher deductions to the lessee/borrower.
Leverage equipment expertise The equipment financier can bea valued consultant, providing benefits that range from setting residual rates through lifecycle asset management solutions.
Avoid getting stuck with out-of-date equipment When a lessor owns the equipment in a true lease, the lessor bears the risk of the equipment used by a business from becoming obsolete.
Outsource asset management Many financing companies provide asset management services that can track the status of equipment, know when to upgrade or update it, and provide services relating to installation, use, maintenance, de-installation and disposal of the equipment.
Obtain the convenience of product and service bundling Certain financial products allow customers to finance the entire cost of equipment, including installation, up-front maintenance, training and software charges, thereby packaging systems and ancillary products and services into a single, easy-to-manage solution.
Get no-hassle equipment disposal Equipment management by a third party, such as an equipment financing company, should enhance the ability of a business to focus on its core operations. In the case of computers and other technology devices, these companies may also agree to dispose of equipment. This service can prevent the lessee or borrower from incurring legal penalties for improperly disposing of such assets because disposal is often regulated by federal, state and local governments.

– See more at: http://www.equipmentfinanceadvantage.org/ef101/benefits.cfm#sthash.DCNwOy1x.dpuf

How Equipment Financing Equips Your Business for Success

How Equipment Financing Equips Your Business for Success

What is the section 179 deduction for 2014?

For the upcoming 2014 tax year, Section 179 has been restored to its original limits of $25,000 plus an adjustment for inflation.Congress has all year to make adjustments to this like they did last year.

Section 179 Tax Saving Information

Simplifying Section 179 Tax Saving Information:

seoimage5Section 179 is a unique tax provision that lets businesses deduct the purchase price of equipment & software bought or financed. The Section 179 Deduction for 2013 is $560,000.00

What is Bonus Depreciation?

Bonus Depreciation is useful to businesses spending more than $560,000.00 in 2013; also businesses with a net loss in 2013 qualify to carry-forward the Bonus Depreciation to a future year. The most important difference is Bonus Depreciation covers new equipment & software only. Section 179 is generally taken first, followed by Bonus Depreciation. Business can claim first-year bonus depreciation equal to 50% of the cost of most new (not used) equipment and software placed in service by December 31 of this year. The amount of equipment purchased and or financed cannot exceed $2,000,000 for 2013.

What Happens to Section 179 at the End of 2013?

The current deduction limit of $560,000.00 is scheduled to drop to $25,000 beginning January 1, 2014.

What about Bonus Depreciation?

Bonus depreciation has spiraled downward over the last few years. In 2011, it was 100% and in 2012 it dropped to 50%. It will drop to 0% starting January 1, 2014. The current cap on capital equipment purchases is $2,000,000.00 and will decrease to $200,000.00 in 2014.

*This information does not assume you are eligible to take advantage of the IRS Section 179 depreciation. Please consult your tax advisor or accountant for additional information. This flyer is intended for informational purposes only and not as Tax advice or consultation. Please see www.irs.gov for complete details.

Did you know that Peanut Butter could be very resourceful? So are we!

Did you know that Peanut Butter can do more than just make a great peanut butter and jelly sandwich?  As it turns out, peanut butter has some unusual uses you might not be aware of:

  • Peanut Butter is good at getting gum out of hair
  • Peanut Butter can help get glue & cement from furniture
  • Sticky, gluey hands, rub them with Peanut Butter

As the Mother, this is really useful….

Everything in life should be so handy, don’t you think?  I do!  I’d like to believe that I am handy and resourceful in helping customers find solutions for their financing needs.  Too often, most finance companies, don’t like to get their hands dirty with deals that are not squeaky clean.  Not me, like Peanut Butter, I think my vendors find me a solution driven resource for them.  Why don’t you try me on your next financing situation? I promise you my best and to put my on my creative hat to help you!

We also have the new Section 179 information.  Email me if you’re interested email shari@computerfinancing.com