Reasons to Finance Equipment in 2025 – Growth

By | April 4, 2025

I know a guy who does commercial snow plowing. In northern states, this can be a solid business model, especially if you can grab some annual contracts.

commercial snow plow financing

You see a lot of contractors doing this in the winter, because all that’s really required is a heavy-duty pickup truck and a plow. And every contractor already has their heavy-duty truck. So just slap a plow on it, and you’re in business.

My buddy, who already owned a successful tree company, was like this. Until he decided to take it up a notch. See, he felt the plow was limited – it pushed snow, but that often presented a problem for companies, as huge mounds of snow in the parking lot created ice melt for weeks. Plus, plows can cause damage.

No, my buddy wanted to offer an upscale snow removal service and use a commercial snowblower. One you could drive, with a heated cab and the capability to throw feet of snow 10-20 yards. It would do a better job in half the time.

Problem: these things are expensive. Like $200k. 

But he went out and gauged interest, and found there was plenty. He took his shot and financed it. Two winters in, the machine had more than paid for itself, and he’s thinking about another. 

This is growth, folks. This is how it happens. And, unless you happen to have $200k sitting around doing nothing that you can spare, it’s not possible without equipment financing.

The positive benefits of acquiring and deploying new (or new to you) equipment, especially equipment that directly generates revenue, cannot be understated. New machines, new vehicles, new software – these are the catalysts that help a company grow. 

Larger companies know this – they finance equipment without a second thought. They know that’s how business works, and that financing and debt are normal. But for many smaller companies just starting that growth stage, it can be scary. That’s because we’re often taught as kids that debt is bad. And yes, if we’re talking consumers with big credit card balances from eating out, sure, let’s avoid that.

But for your business? You almost have to finance equipment if you’re planning to be around a decade from now. Because if you wait and wait and wait until you can finally afford to pay cash for that new equipment, two things have happened – you forever lost growth opportunities while your capabilities were maxed out, and your “quick to finance” competition has grown exponentially, and can offer considerably better service than you. No, they weren’t “lucky” – they fueled their growth with financed equipment.

Waiting to pay cash for equipment is like a slow death spiral in business. If you see opportunity, grab it – fortune favors the bold. And it favors those willing to finance. 

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