Small Business Equipment Financing

A business owner who is unable to pay cash for the equipment he or she needs will often use a lender for small business equipment financing. If you need equipment financing, your local bank may be the first source to try since it already has an established relationship with you. You can also use the Internet to check for available lending sources.

Benefits of Equipment Financing

Cash is usually critical when you are a small business owner. By financing your equipment, you can keep your cash set aside to be used when you need it. Make sure to consider the different types of financing structures available from your lender before you decide to acquire your new equipment.

Taxes should also be taken into consideration when you decide to finance your equipment. In most cases, the costs associated with your equipment financing can be deducted from your income taxes. You can consult with a tax professional if you are unsure of whether to buy or lease the equipment you need. He or she can also help you determine whether to use the equipment as collateral with your lender or to use other collateral you may have that offers a better tax incentive.