In Recognition of 2022 National Small Business Week
WASHINGTON, D.C.– During National Small Business Week, May 1-7, 2022, the Equipment Leasing and Finance Association (ELFA) is highlighting key reasons for small businesses to rely on leasing and financing to acquire equipment. Most small businesses need equipment in order to operate and grow, and each company must decide on an acquisition strategy that is right for them. A large majority of U.S. businesses—nearly 8 in 10—lease or finance their equipment so they can take advantage of a range of benefits.
“The $900 billion equipment leasing and financing industry helps all types and sizes of commercial businesses acquire the equipment they need to conduct their business operations,” said ELFA President and CEO Ralph Petta. “For small businesses in particular, which may not have access to as many funding sources, equipment leasing and financing offer flexible, budget-friendly options that can help with cash flow and keep equipment up-to-date. We’re pleased to share some of the many reasons equipment finance will help ‘equip your business for success.’”
Data show that equipment leasing and finance is on the rise in 2022. As businesses emerge from the pandemic and ramp up operations to meet a growing economy, ELFA is sharing five key benefits that make equipment finance an advantageous option for small businesses:
- Get 100 percent financing with no down payment – Unlike with most traditional lenders, it is possible to arrange 100 percent financing of equipment with no down payment. This allows the business to hold on to cash, or working capital, and use it for other areas of the business, such as expansion, improvements, marketing or R&D.
- Eliminate the risk of ownership – A business just starting out can use equipment financing to help lessen the uncertainty of investing in a capital asset until it achieves a desired return, increases efficiency, saves costs, or meets other business objectives.
- Keep up-to-date with new technology – To be on the cutting edge and competitive, businesses often need access to new technology. Leases, loans and other financing arrangements enable small businesses to acquire more and better equipment than they could have without financing.
- Plan expenses for cash flow and business cycle fluctuations – Financing equipment allows for greater certainty in budgeting by setting customized rent payments to match cash flow and even seasonal cash flows.
- Obtain the convenience of product and service bundling – Certain financial products allow businesses to finance the entire cost of equipment, including installation, up-front maintenance, training and software charges, thereby packaging systems and ancillary products and services into a single solution. This makes the equipment acquisition easy to manage and frees up the business to focus on its core operations.
These are among the most compelling benefits for the financial and operational needs of startups and small businesses. For additional benefits and more information about how equipment finance equips business for success, visit www.EquipmentFinanceAdvantage.org. This site includes articles, questions to ask when financing equipment and a searchable list of equipment finance providers. Resources include:
The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the nearly $1 trillion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its 580 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. ELFA has been equipping business for success for more than 60 years. For more information, please visit www.elfaonline.org.