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Why Do Companies Finance Equipment
31 July 2018

Why Do Companies Finance Equipment

There are many reasons why companies finance equipment. Equipment financing provides flexibility and protection against technological obsolescence. Financing allows a company to better match cash outflow with revenue production through the use of equipment. Financing conserves valuable working capital and bank lines. Equipment financing is efficient, convenient, and allows for 100% financing.

Top Reasons Why Companies Finance

  1. Purchasing Power.   Equipment financing allows the lessee to acquire more and/or higher-end equipment.
  1.  Balance Sheet Management.   Certain types of financing help the customer better manage the balance sheet and improve the overall financial picture, by conserving operating capital and freeing up working capital and bank credit lines for inventory, expansion and emergencies.
  1. 100 Percent Financing.   With equipment finaning, there is no down payment. The term of the lease can be matched with the useful life of the equipment.
  1. Asset Management.   A financing provides the use of equipment for specific periods of time at fixed payments. It assumes and manages the risks of equipment ownership. 
  1.  Service Additions.  Many customers choose to structure their financing to include installation, maintenance and other services, if needed.
  1. Upgraded Technology.  Some financing provides companies with the ability to keep pace with technology.  The customer can upgrade or add equipment to meet ever-changing needs.
  1. Flexibility.  There are a variety of financing terms available, allowing the customer to customize a program to address      needs and requirements – cash flow, budget, transaction structure, cyclical fluctuations, etc.
  1.  Proven Equipment-Financing Option.   Over 30 percent of all capital equipment in the United States is acquired through financing.

Contact GSG Capital at info@gsgcapitalllc.com or www.gscapitalllc.com



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