Key benefits of financing compressed air equipmentMember News
An insight into the wide variety of advantages which can come with choosing to finance compressed air equipment.
Many businesses balance maintaining and investing in the right equipment needed to guarantee success and growth. The reality is that this gets navigated by the ability to raise finance in the first place. And to equip a business with the correct tools can be costly.
Operating cashflow can pay a large sum upfront to secure the required equipment. But there is also a variety of different equipment financing options available. These enable the flexibility to extend the payment terms over a period of time, rather than all at once.
Equipment financing can cover any kind of business operating expense. We’re familiar with company cars, vehicle fleets and smartphones being on finance deals. So why not consider this for larger machinery, such as compressed air systems?
A compressed air lease package is like the traditional car lease plan. The business will make monthly payments to a leasing company to cover he equipment rental payments. So, by leasing you can have access to upgraded compressed air plant without the expensive hit on your cash flow. The finance agreement could be for a compressor, downstream equipment, or even a nitrogen generator.
And once the terms of the lease agreement are up, there are usually three options:
- End the terms and return the equipment
- Extend the lease agreement
- Option to buy the equipment
Benefits of compressed air plant financing and leasing
There are several benefits of equipment financing for business owners and decision makers.
1. It can increase your working capital
The most obvious benefit is avoiding paying a large sum of money upfront for compressed air equipment. Every business has periods of time where cashflow can be irregular. But using equipment financing frees up the capital for other necessary expenses.
2. Flexible finance solutions
The type of financing solution available can get tailored to your exact needs. This includes covering different periods of time starting at a 2-year period, to leasing extension and buying options. Whenever considering new compressed air plant, why not ask your supplier for a finance package option to consider?
3. Keep up to date with the best compressed air technology
Does your compressed air plant need upgrading to improve efficiency? Not all businesses can afford the newest equipment. Improved compressed air equipment often leads to an increase price tag. Leasing gives the option to get the newest technology without paying out all at once for it.
4. Equipment expertise
Could you lease equipment from a dedicated compressed air supplier? They will be the equipment experts and will often include maintenance support within the package. With this ongoing support, you will have the confidence in a reliable compressed air system.
5. Increase competitive advantage
Does your competitor have an updated compressed air system? Investing in a reliable and efficient compressor can actually improve your business processes and beat the competition. Equally, not having access to the latest tech could see your competitors pull out in front…
6. Reduce risk
And finally, every business decision involves a degree of risk but if you can limit it that’s an ideal situation. Even if you have the capital on-hand to invest in new equipment, it might make sense to preserve it instead of spending it. Financing removes many unnecessary financial risks and allows you to focus on what you do best, growing the business. best, growing the business.
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