Why Do Nearly 80% of U.S. Businesses Use Financing to Acquire Equipment?

Adam Grupp
Feb 24, 2017
2 min read

Have you used or thought about using at least one form of financing to make your next equipment or technology purchase? According to a recent Equipment Leasing and Financing Association (ELFA) study, you're not alone. In 2015, 78% of U.S. businesses used financing to acquire equipment and forecasts are showing a 3% growth in investment in equipment and software through 2017. This tells us that the use of equipment financing will remain strong if not increase.

As a business owner, it's important to examine all options when it comes to acquiring equipment and technology. How you purchase the equipment is going to have a vital impact on all aspects of the business. There are a variety of reasons 8 out of 10 businesses believe financing makes good business sense, including:

100% Financing - With lease financing, a business can purchase equipment, technology, software and services with 0% down, optimizing business cash flow.
Protect from equipment obsolescence - Keep up-to-date by acquiring more and better equipment than you could if the financing wasn't available.
Accelerated ROI - By breaking the purchase up into small monthly payments vs paying one lump sum, you're able to make an immediate return while the equipment creates a revenue stream.
Customized Payment Options - With financing, you can customize payments to match your monthly budget, including seasonal income fluctuations.
Tax Benefits - The first 9 complaints out of 10 from business owners today all have to do with paying taxes. Let's be honest, no one wants to pay more than they have to and equipment financing is a good way for you to keep your money in your pocket.

We encourage all businesses to examine the options in whether to use cash or financing when they acquire their next asset. This is a decision every business faces and there are channels available to help you make an informative decision for your business, Fusion Capital Corporation is one of those channels.

If you're planning to acquire equipment or technology for your business, Fusion Capital can help you make an informative decision with a free consultation on finance options. Feel confident in making a decision the makes good business sense. Contact us today with any questions and to learn more.