Equipment financing is all you can think about, especially since you and your business partner just found the best location to get started. But as you think more and more about equipment financing, a question pops into your head: “How do I get equipment financing anyway? Should I just finance everything? Or rent?”
If you’ve just started your own business and have questions on equipment financing, read on to learn the steps you need to take to get the equipment financing you need.
One of the first things you should think about is whether you’ll rent or buy your equipment. There are benefits to each, so don’t assume one is inherently better than the other.
Renting equipment is perfect for businesses that are seasonal and don’t have the space to store the equipment when it’s not in use. Another great benefit is that you won’t be responsible for equipment maintenance. Plus, you could have the equipment brought to your business or worksite so you won’t have to worry about transportation.
Buying equipment is perfect for businesses that are open year round and use the equipment often. Yes, you will have to maintain the equipment yourself, but once you factor in what the equipment costs, it might make much more sense to buy instead of rent.
If you’re still unsure if you should rent or buy your equipment, check out this article that talks about the pluses of each in depth.
3. If You Haven’t Already, Write a Business Plan
Regardless of where you’ll get financing from, it’s always best to have a business plan on hand. Business plans are great for when you’re pitching to investors or getting equipment financing. With a well-written business plan, financing companies can better craft equipment financing that fits your needs with affordable rates.
Business plans also give you the chance to write down what your overall goals are and how you plan to achieve them. You can use a classic slideshow to display your plan or you can use a program with a business plan template. To learn more about what a business plan should include, check out this helpful article from fitsmallbusinessplan.com.
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