December '20

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1 8 G R A P H I C S P R O D E C E M B E R 2 0 2 0 G R A P H I C S - P R O. C O M rate, speedy approval, and no blanket lien on your business, it may be a workable op- tion to acquire equipment. Alternative financing: Often, when a business needs to acquire equipment quickly with flexible financing payment structures, an alternative financing option may be the best solution. A company that specializes in equipment financing typically understands specific markets, the special- ized equipment, and the business owner demographics, which assists in the credit approval and funding process. Typically, at any given trade show, there are several financing providers exhibiting looking to earn your business. Also, many of these companies have developed finance programs with equipment manufacturers and dealers in hopes of creating a seamless purchasing process for their customers. The primary benefit of choosing a com- pany that specializes in equipment financ- ing typically means leaving your cash and bank lines intact with only a UCC-1 (lien) against the equipment. Other benefits may include more flexible repayment structures and broader credit approval. The drawbacks include potentially higher borrowing costs, specifically for newer businesses and chal- lenged credit borrowers. OTHER CONSIDERATIONS Above are the most popular ways to ac- quire business equipment. It is always recommended that you request a financ- ing quote from more than one source, but see if the manufacturer/dealer has a pre- ferred lender, along with one to two other finance quotes to see what works best for your specific business scenario. You may also want to check with your accountant and tax advisor to see if your company can take advantage of tax incen- tives. Lastly, when negotiating, make sure to review any down-payment amount, length of the term, monthly payment, and payoff variables when reviewing commer- cial lenders. When attending a trade show, check out which finance companies are in attendance. You may want to choose a finance company that specializes in your market and knows the equipment types as well as understands your business model. This may help stream- line the finance process and help you ac- quire the equipment you find at the event. You have a lot of financing options avail- able and there are pros and cons to all of them; therefore, understanding your finan- cial circumstance and financial goals are paramount in choosing the best option. GP CRAIG COLLING, CLFP is a Senior Vice President – Sales with Ascentium Capital. Ascentium Capital has provided over $6B in equipment financing transactions since 2011. Colling's vendor finance team, located in Scottsdale, Ari- zona, exhibits at over 30 trade shows annually and strategi- cally teams up with manufacturers and equipment suppliers nationwide to assist business owners by offering financing on equipment companies need to grow their business. You have a lot of financing options available and there are pros and cons to all of them; therefore, understanding your financial circumstance and financial goals are paramount in choosing the best option. (Image courtesy Epson)

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