Lies People Hear About Bank Equipment Financing

When it comes to getting the equipment needed for your business, you have to think strategically in order to do what is best for the financial future of your company.  Though many business owners would love to have the funds on hand to pay cash for the equipment they need, this is not a reality for most businesses. The purchasing of equipment is a major investment. Yet, it is also the lifeblood of your company.  Without equipment, you can’t preform the service you set out to do. So here are some of the most common lies that you hear about bank and vendor financing.

Lie #1: You have to have money for a large down payment.

The truth is you don’t need to have a giant down payment ready to go when you are trying to set up an equipment financing plan.  When you work with KLC financing company in MN, you will be able to see the advantages they can offer due to their relationships with banks.  They can offer flexible, customized plans that don’t require a large amount of money to make the down payment in order to move forward with financing your much needed equipment.

Lie #2: Financing ties up your money.

When it comes to keeping your lines of capital open, financing or leasing services can offer you greater success.  Having cash on hand instead of trapped in self-owned machinery is often the best option for many businesses.  When using a leasing service or financing company you retain more money in your bank account.  It’s just like paying monthly bills instead of clearing out your entire bank account in one shot. This helps to protect your company.  It frees up your cash so that you can take care of your day-to-day expenses.

Lie #3: You get stuck with old equipment.

One thing that people have concerns about when it comes to bank equipment financing is that traditional banks may have restrictions on the age of the equipment they are willing to finance.   You know the best equipment you need in order to get the job done, so don’t settle for a traditional bank who can’t help you get what you actually need.  KLC Financial Services in MN has a flexible approach to leasing and financing that allows your company to get the equipment that is right for the job.