In the world of equipment financing, there are some widespread misconceptions that have caught on and circulated. Many people believe that equipment financing is only for certain kinds of equipment or specific industries.
Other myths we hear a lot are that equipment financing is too expensive or that the terms are inflexible, making them bad options for businesses that have evolving needs. Belief in these myths can lead to business owners making ill-informed decisions.
The good news is we can easily debunk these myths and misconceptions and provide the facts that business and equipment financing is worth looking at as an option to finance your equipment and get your business where it needs to be. In this article, we’ll take you through why these myths are inaccurate and show you how many doors open for your business when you take advantage of asset based lending in Canada.
Myth: Only Specific Equipment Can Be Financed
While it’s true that equipment financing is commonly used in specific industries like trucking and construction, at WiseCap, we’re happy to help with all kinds of equipment in a variety of industries.
Our staff come from various backgrounds, including marketing, advertising, trucking, railroading, law, financing and accounting. That has helped us understand the variety of needs business owners have and ensure we provide access to business finance services for all business owners, not just those working in certain industries.
We help finance everything from truck loans to medical devices to point-of-sale systems. Most businesses need equipment, and we work with business owners to help finance the equipment they need to run their business successfully.
A lack of flexibility is one of the most common myths around equipment financing. Many people believe that if they choose the equipment financing route, they will end up locked into contracts with low or no flexibility or sign themselves up for more debt they can take on.
This has been especially difficult throughout the pandemic, as ever-changing circumstances have required businesses to pivot at a moment’s notice. But equipment financing companies have recognized that. In June 2020, a survey by the Equipment Leasing & Financing Foundation found that 92 per cent of equipment financing lenders offered modifications, deferrals and extensions to existing financing agreements.
If you’re wondering how to choose a financing company, find one that offers flexible terms and is willing to work with you rather than lock you into a deal that makes you feel uncomfortable.
Myth: Equipment Financing is Too Expensive
Sometimes it makes the most sense to purchase equipment. That’s especially true for those who have the cash to pay for it outright. This isn’t the case for many businesses, or even if they do have the capital, they don’t want to sink it all into an equipment purchase.
Equipment leasing is often more economical, depending on the circumstances, and provides businesses with access to the equipment they need without having to pay for everything upfront. These are things we discuss with our clients at WiseCap. Every business is different, as are their needs. We’ll find the best option for you because we want your business to do well.
It’s true that some lenders don’t take on used equipment financing because of the idea that risks are greater, but at WiseCap, we believe that owners should have options. Aside from the fact that used equipment has been much easier to come by than new equipment because of supply chain disruptions, it often makes sense for businesses to opt for used equipment, especially if their business doesn’t require them to have the latest and greatest technology.
The bottom line is that equipment financing provides businesses with the tools and equipment they need to operate successfully and remain competitive. The right equipment financing company will help you find the best solutions, not try to sign you to a contract that doesn’t make sense for you. When your business does well, our business does well. Don’t let misinformation and myths prevent you from looking at all your options and making an informed decision on what path is right for you.
At WiseCap, we don’t believe in a one-size-fits-all solution. What works for one business may not work for another. Our financing experts will work with you to develop solutions that meet you and your business’s specific financing needs. Contact us today to get started on meeting your equipment needs so you can watch your business grow and thrive.