There are many great reasons to opt for equipment financing when your business is in need of equipment. Having access to the equipment your business needs when you need it can help your business grow and thrive, give you a competitive edge, and increase productivity and efficiency.
Financing that equipment allows you to do all those things while maintaining your cash flow, increasing your working capital and creating a consistent budget.
When equipment is needed, most people instinctively look at brand new equipment. But used equipment can be a great alternative, often at a more affordable price point.
In this post, we’ll look at new and used equipment, the benefits each can bring, and how to decide between the two. We’ll also discuss how heavy equipment financing can help whether you choose new or used equipment as the best option for your business.
Benefits of New Equipment
The main benefit of new equipment is that it’s brand new. New equipment will allow you to acquire the most recent technological developments. These developments often make equipment safer and more efficient, an advantage for any business. Well-maintained used equipment may be able to do a similar job as new equipment, but new equipment will have better performance, accuracy and speed.
Another benefit is that when buying new, you will often be able to customize the equipment to suit your needs. The option of tailoring equipment with specific features can make it easier to roll the equipment into your operations and make systems more efficient and productive going forward.
There’s no guarantee that new equipment won’t break down, but if that happens, there’s a warranty for peace of mind. Used equipment may come with a warranty, but often it will be less robust than a warranty for new equipment.
For some, used equipment might carry impressions that it is out-of-date, run-down or past its glory days. That might be true on occasion, but as long as equipment upkeep and maintenance has been a priority and you do your research, you can find well-maintained used equipment that gives you exactly what your business needs.
The greatest appeal of used equipment comes at its lower price point. New equipment comes with newer features and technologies, but those have a cost to them. If you have a tight budget or don’t need the latest technology, it can make more sense to buy more affordable used equipment.
Another pro in the used equipment column is that by buying used, you are giving quality equipment a new life. With sustainability at top of mind for consumers and companies alike, buying used equipment can help to lower your business’s carbon footprint while saving money.
Used equipment offers many unique and attractive benefits. However, it’s essential to know what to look for and work with reputable sellers (which is also important when purchasing new equipment).
In addition to the above, there are other important factors when choosing the best equipment solution for your business.
Sometimes the newest technology isn’t the most efficient, or new equipment has more bells and whistles than you need. While having the newest technology available is appealing at first glance. For some businesses or for some purposes, it’s not necessary.
Consider the case with smartphones. There are new models available every year with new technology and new features. For some people, it’s a priority to have the latest and greatest, but many others will quickly find that they don’t use or need those features. It all depends on your needs and what you need the equipment for.
Other times, even if new equipment is preferred, the decision comes down to cost and availability. A brand new piece of equipment might be out of reach financially, although if that’s the case, we can help you get access to new equipment. Or you might decide that the additional cost isn’t practical.
Sometimes, if there are supply chain issues or equipment shortages for the new equipment you need, as was often the case throughout the pandemic, it may be best to go with what’s available immediately. If the equipment is necessary to run your business, waiting could be detrimental.
As a business financing company that is made up of many business owners from a wide variety of industries, we have relationships with many sellers and equipment brokers to help get you the equipment you need. Whether you decide new or used equipment is the right choice for your business, we can help finance and source it. Give us a call to see how we can help with your equipment needs.