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Keep your business update with `best equipment financing options

KEEP YOUR BUSINESS UP TO DATE WITH EQUIPMENT FINANCING U.S. business investments in equipment and software are expected to hit new highs in 2016, but how many of those dollars are being financed through loans, leases and lines of credit? Keeping up to date with new equipment is crucial for businesses to stay competitive. Staying current comes at a price, but don't let these expenses delay needed upgrades. Instead, consider the different options for acquiring new equipment. EQUIPMENT FINANCING: An increasingly popular alternative The amount of U.S. businesses investing in plant, equipment and software continues to increase each year. And of those investment dollars, the percentage projected to be financed through loans, leases and lines of credit grew as well. 2.0 - $1.63 trillion $1.05 trillion Spent on investments in plant, $1.5 trillion $1.5 trillion equipment and software $860 billion $922 billion Financed through loans, leases 1.5 and lines of credit 10 - Tip: By leasing your equipment, you can get the 57% 61% 64% equipment or software upgrades you need without your budget taking a big hit. 0.5 0.0 2014' 2015? 2016 These investments aren't limited to information technology.“ Equipment finance dollars in 2014 were distributed as follows: 11.3% 4.2% Industrial/ Manufacturing 28.5% 19.7% 11% 4.2% 4% Transportation IT and Related Technological Services Agricultural Construction Office Medical Machines As of January 2016, confidence in the equipment finance industry is 54 out of 100. However, 17.9% of executives expect more access to capital to fund equipment purchases in the beginning of 2016.5 17.9% LEASING VS. FINANCING Many industry-diverse companies are opting to lease equipment and take advantage of the following benefits: Some businesses prefer to loan, or purchase, equipment, which has benefits of its own: • Reduced upkeep costs: Companies who choose to lease equipment do not need to budget for ongoing maintenance requirements. • Increased flexibility: You can lease the appropriate equipment for a timeframe that suits you. Ownership: Companies taking the loan option will hold the legal title to the equipment.0 • Depreciation allowance: You may claim a tax deduction for a portion of the loan payment as interest and for depreciation. • Low rates: • Tax deductible: Under the 179 IRS Tax Code, the cost associated Equipment finance loans typically come with low interest rates." with leasing business equipment is tax deductible. • No down payment: In addition to upkeep costs, there is typically no down payment required for an equipment lease. THE YEAR AHEAD Since the historically low interest-rate environment is coming to an end, this will encourage businesses to invest in upgrades before interest rates increase further. Depending on the industry of your business, you might find a more competitive equipment-leasing environment than others." Overall, equipment and software investment is expected to grow by about 4.4% in 2016. Some industries will see this more than others, especially in the first half of the year." Investments expected to strengthen over the next 3-6 months Aircrafts Ships and boats Computers Software Investments expected to remain weak over the next 3-6 months Materials handling equipment Mining and oilfield machinery Agriculture machinery Railroad equipment Investments expected to slow slightly or remain mostly steady over the next 3-6 months Construction Other industrial Medical equipment Trucks machinery equipment With how quickly technology advances, it doesn't take long for equipment to become obsolete, and outdated equipment can be a liability. Deciding whether to lease or buy business equipment depends on the state of your business and your financial goals. Contact Capital Hero LLC, today to learn more about financing or leasing options that can put your business on a health path forward. Capital Hero, LLC. offers highly personalized service and will help your company cut through the red tape in the financial lending arena that is often involved in securing business loans from banks and other lending institutions.. CAPITAL HERO LLC Sources: 1"Top 10 Equipment Acquisition Trends for 2014," January 13, 2014, Equipment Leasing and Financing Association 2 "Top 10 Equipment Acquisition Trends for 2015," January 12, 2015, Equipment Leasing and Financing Association 3"Top 10 Equipment Acquisition Trends for 2016," January 12, 2016, Equipment Leasing and Financing Association * "Equipment Market Analysis," November 2015, Equipment Leasing and Finance Association S"Monthly Confidence Index - Equipment Finance Industry," January 2016, Equipment Leasing and Finance Foundation 6"What is Better - to Lease or to Buy Computer Hardware Equipment?" April 17, 2015, * "Business Equipment: Buying vs. Leasing." 2015, Nolo "The Section 179 Deduction," US trillion

Keep your business update with `best equipment financing options

shared by capitalherollcm... on Jul 31
Equipment financing solutions allow companies to obtain the latest, most advanced equipment and stay competitive with their tech-savvy rivals. Many companies, however, may not want to spend the money ...




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