According to the U.S. Small Business Administration (SBA), for a business to succeed and grow over time, it often requires special assets and equipment. Is it the right time for your business to buy more trucks or machinery? We have some pros and cons to help you decide.
Benefits of New Equipment
One of the biggest benefits comes in the form of a tax break. Your business can claim depreciation on some equipment and assets. Additionally, when a business buys equipment rather than leasing, it can often save the company money, and allows you to count it as an asset on your balance sheet.
Negatives of New Equipment
To buy new equipment, your business will either need to utilize hard-earned cash or take out a loan, which must be paid back. And while having new equipment can be a bonus for growth, your business will be fully liable for maintenance and repairs as needed.
Loans May be the Right Answer
When you borrow money to buy new equipment, you’re essentially distributing the total cost over a longer period of time. This can help with your company’s bottom line while you put that new asset or piece of equipment into action.
InRoads Business Services Can Help
We want to be your partner in business with the tools you need to succeed, from equipment loans to Visa© credit cards designed for everyday business use, working capital lines of credit, business banking, and merchant services that allow you to take credit card payments over the phone, online and in person. Find what you need at inroadscu.org/businessservicesteam.