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What Your Best Option for Capital Upgrades?

Every small business in America is currently sitting on a financial time bomb, whether they know it or not.

This ticking countdown to disaster comes in the form of heavy equipment and other capital expenses that are reaching the end of the life spans and chewing up plenty of revenue in the form of downtime and maintenance as they get there. Whether its a forklift that needs a few extra minutes to get started in the morning, or a conveyor belt that goes through WD40 like water, all these little inconveniences take a bite out of your bottom line.

So why don’t small business owners just bite the bullet and shell out for new gear? If you’re asking this question, you’ve obviously never priced heavy equipment before. Even a low-end forklift, for example, starts at around $5,000. That’s a lot of cash for small businesses to be shelling out.

Fortunately, there are a few options for upgrading equipment that aren’t quite so detrimental to annual revenues. Here are a few for your consideration.

Buying New
Buying fresh off the factory floor industrial equipment doesn’t always seem like the most affordable capital upgrade option but, depending on how much you’re losing in downtime and maintenance costs, it’s sometimes the best bet. After all, downtime has a ripple effect that reverberates throughout your entire workflow.

If your heavy equipment is spending more time in the repair shop than on the job site, new equipment can get things humming again in a heartbeat. Even better, sharp negotiators can arrange for loaner equipment to be delivered to replaced warrantied vehicles, should they ever break down.

Buying used isn’t always the best deal, but it’s an option you shouldn’t overlook. There are plenty of options for financing business equipment that can spread the pain of payments out over time and keep finances in good shape.

Buying Used
Used industrial equipment can frequently be a very good deal because, if you’re buying it from a reputable source, it’s usually been overhauled or factory certified. This takes a lot of the guess work out of the buying process and can help worried business owners sleep at night.

In fact, with the right service plan, used equipment is every bit as a good a deal as brand new gear. This stems from the sad fact that many businesses go under precisely because they have invested too much in heavy equipment.

Without the jobs to put all that equipment to use, these businesses quickly go under. Once the company’s tanked, their assets go up for auction and can be snapped up at a major discount.

Leasing
Unless your business is absolutely booming, there’s a good chance that a lot of your equipment stays idle during much of the year. To keep ahead of this financial drain, a lot of businesses simply lease equipment as they need it, and return it once they’re done.

There’s no shortage of reliable leasing agencies like Verilease that can help you get exactly the equipment you need, exactly when you need it. And if equipment costs are draining your bottom line, they are definitely a company you should be talking with.

Heavy equipment upgrades are a necessity of doing business, but spending an arm and a leg on them doesn’t have to be a part of the process.

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