Keeping up with the “reasons to finance equipment in 2022” theme, let’s talk about a favorite subject of business owners everywhere – getting the jump on your competition.
Business is all about providing good products and services that are of value to your customer base. But competition is always going to exist – everything you do, your competitor will try to do better (and vice-versa). It’s almost like a sibling rivalry.
One day, a company is having a meeting, and the VP brings in a brochure for a piece of equipment that will allow them to offer a service they previously could not. For purposes of illustration, let’s say it’s a construction company getting a new hydraulic concrete pump that’s capable of higher reach than most others in the immediate area. And the company strongly feels the area is poised for growth… including vertical growth.
During the meeting, it’s decided that it’s a calculated and worthy risk – based on potential growth, offering this improved service locally will put this company squarely in the sights of developers moving into the area and constructing new facilities. They can cite their increased capabilities when they present a bid, which is always a nice caveat.
One issue – this is a bank account draining purchase. And you know what I’m going to say now, right? Fast equipment financing to the rescue.
The previous example is probably a bit over-simplified, but the general theme is incredibly valid. Companies venture into new areas of service (or product offerings) all the time. And quite often, it’s done stealthily – you want your competition to be as surprised as your market is delighted. Because if you get there first, you will enjoy a time where your competition must play catch-up (if they even can… sometimes they say “ok, let them have that market segment”).
And in the course of these meetings and strategic planning for growth, the most preferred way to get the equipment for any expansion is to finance it. This allows the new equipment to pay for itself over time – in fact, in most cases, assuming the company was right and the new offering is a hit, paying for itself is almost assured.
Making a bold move to expand your offerings is part of business. And equipment financing is an important part of that.