My most recent post gave two reasons why now is a good time to finance equipment. But you know, now that I think about it, I need to expand on that a lot further.
It’s been more than three years since I did a series on reasons to finance equipment, so it seems like a good time to revisit the topic. It’s good to do this every few years, as the economy and marketplace undergo constant change.
To give one good example, many companies put off financing equipment in 2022 (the last time I did this) due to rising rates. And yes, rates rose a lot that year. But today’s economic landscape is much different – rates are holding steady, with most experts feeling some minor cuts are far more likely than rates going up.
Anyway, it’s a good time to finance right now, and in this next series of posts, I’ll go over reasons why. Off the top of my head, here are a few topics you can expect me to discuss.
Reasons to finance equipment in 2025:
- Growth – Get the equipment you need right now.
- Preserve Capital – Keep your own money for emergencies.
- One-of-a-Kind Deals – The excellent used market warrants further discussion. Don’t miss out.
- Predictability – Use fixed rates to predict costs and expenses.
- Tax Advantages – Both financing and leasing have tax advantages.
- New Technology – Take advantage of new technology immediately.
- Competition – Keep up with competitors or (even better) lap them!
- Pay With Tomorrow’s Dollars – Today’s money is worth more than tomorrow’s. So getting needed equipment today but paying with future dollars is a strong move. Especially with fixed payments.
I can talk equipment financing all day, so I like this particular topic a lot. I also like giving reasons, partially because most of us are taught from a very young age to avoid debt. But using debt, particularly equipment financing, is not only a very healthy and smart business tactic, it’s often THE catalyst to growth. But I’m jumping the gun – that’s for my next post.
Stay tuned folks – more to come!