Is Equipment Financing the Right Solution for Your Business?

Your gas station or convenience store might need new equipment, but you may well have better investments for the cash you have on hand. Financing this equipment could be a smarter choice, giving you the best of both worlds to fuel your business all around. Equipment financing allows you to invest your available capital in expanding your business, instead of purchasing equipment that depreciates in value over time. 

Here are a few of the many benefits of equipment financing:

• 100 percent of the costs, including shipping, installation, and maintenance, can be included in the loan.
• There are no blanket liens or second mortgages.
• Equipment can be financed even if you do not own the site.
• Financing doesn’t tie up lines of credit. Preserve your lines of credit for things that grow your business, such as expansion, additional land, fuel inventory, etc.
• Payments are fixed, not variable. You don’t have to worry about rates rising and the cost of operating your business suddenly changing.

There are also a number of tax incentives related to financing that can be of great benefit to you. Under Section 179 of the tax code, businesses that spend up to $2,000,000 a year on qualified equipment may be able to write off these expenses in the current tax year. This incentive was designed with your growth in mind to encourage small businesses to invest in the important equipment that they need to sustain their operations and elevate their potential. See your accountant for more detail!

If you are considering a loan or line of credit either to finance your business equipment upgrade or secure new site equipment, equipment financing may be a more effective borrowing option than traditional loans or other forms of borrowing. A wide range of equipment can be financed, from gas pumps and dispensers to UST’s, POS, canopies, co-branded restaurants, commercial card lock payment systems and more! So you can save your cash to buy your next gas station or convenience store, and invest in your future. Contact Patriot Capital at 877-527-0383 to learn about the advantages of equipment financing for upgrades and new site investments.