3 Ways To Make Equipment Financing Work For You

By Author: Clix Capital
Total Articles: 12
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Enterprises are often cautious when it comes to taking equipment leases and loans because they fear falling into a cycle of debt and being bound by unsuitable terms and conditions. Not only does this result in them unsuccessfully trying to self-finance their equipment (and losing a lot of money in the process!) but it also puts their business in a precarious position. Here are three ways in which you can simply avoid all this hassle and fulfil your equipment needs effectively:

Firstly, understand your equipment needs before choosing to go in for a loan or a lease. Loans are far more suitable for long-term equipment usage. Do you have a preference for ownership? Then loans are the way to go. A lease, on the other hand, works better for firms who need equipment on a relatively temporary basis. So if you have certain goods that need to be produced, say every two weeks, then procuring equipment on a lease makes a lot more sense. It’s also important to remember that owning equipment involves a maintenance cost, whereas leasing doesn’t. However, a loan also paves the way to an asset and associated depreciation benefits ...
... being attained at completion, whereas a lease simply allows you to borrow equipment briefly.

Secondly, whether you decide to go in for a lease or a loan, make sure you enter into an arrangement that is convenient for your business. Choose a company that allows you to structure your payments according to product cycles and cash flows. A great example of this is Clix Capital, who provides its clients with customised lease structures. Formerly known as GE Financial Services, Clix Capital is a company renowned for providing flexible financing solutions. The company experts are available for consultation at various stages to give guidance on how best to proceed.

Lastly, think long-term. In a landscape where technological advances are made every day, saving time is a priority. Therefore, it’s best to join hands with a company that offers financing options for a wide variety of equipments from the very start. This way if you decide to expand into different types of equipments down the line, you can do so easily without going through the tedious process of scouting for a new company. Clix Capital allows you to invest in equipments ranging from office equipment to plant and machinery for factory usage. All these options come with customised asset backed payment solutions to ensure that financing your equipment is a risk-free and smooth endeavour for all.

You can learn more about equipment leases and loans here: http://www.clix.capital/equipment-finance.html