When deciding between equipment leasing and financing, many business owners jump straight to wanting a loan. After all, shouldn’t they want to own their equipment? However, this is not always the best option. There are a lot of benefits to leasing equipment. The following are four reasons why you may want to lease your future equipment.
1. It Is Less Expensive Upfront
One of the big concerns for businesses is the upfront cost of equipment. It can cause a major issue for cash flow. Leasing is one of the best ways to spread out the cost to avoid such a significant hit. There are minimal upfront expenditures. Some leases require no money upfront. You can instead spread out the cost over a series of easy payments.
2. You Can Be More Flexible
Typically, leases can be negotiated with fairly flexible terms. If you are leasing a lot of equipment, you may be able to negotiate better rates. Alternatively, if you want to reduce your monthly costs, you can likely extend the term of the lease. You may even be able to negotiate an arrangement that lets you lease equipment with less-than-ideal credit.
3. It Is Easier To Upgrade
For many businesses, equipment will only be used for a few years. If you are in a fast-paced industry that has significant technological improvements at regular intervals, you likely don’t want to have a bunch of equipment that has been turned obsolete by the latest evolution. Leasing means that you aren’t going to be stuck with that equipment and can easily upgrade. In some cases, leases may even allow upgrades during the term.
4. There Are Big Tax Benefits
Although leases are more expensive than buying equipment outright and may be more expensive than getting a loan, they have some tax benefits that can offset this. Specifically, the lease payment can typically be considered an expense because you are paying money but not getting an asset. Thus, they can be used as a tax deduction. Conversely, buying equipment outright cannot be deducted (although the depreciation can be). For a loan, only the interest and fees are deductible. This can help make the math for a lease more enticing.
Learn More Today
Contact WHW Capital to learn more about our leasing packages. Whether you need technical equipment, large industrial machinery, or anything in between, our team will structure a package tailored to your business requirements.
You likely know that investing in commercial real estate can be a great way to build your wealth. However, if you are like a lot of people, getting started can seem intimidating and confusing. Fortunately, it doesn’t have to be. Once you understand the basics, you can get started making investments in commercial properties.
Types of Commercial Properties
You may be surprised to learn that most types of investment properties are considered commercial. This is because you are buying them for business purposes, even if the property itself is residential. These are the key types of commercial properties:
- Offices: These workspaces are very flexible and quite varied. They can be small, low-rise buildings, large skyscrapers, or anything in between. Some are multiunit whereas others are only intended for one business.
- Residential: Rental properties are considered commercial property. You may invest in an apartment building, for example. Additionally, you could consider investing in a short-term rental property.
- Retail: Unsurprisingly, retail spaces are considered to be commercial. These often get premium rents based on their location. A well-trafficked area can be a goldmine.
- Industrial: These are properties such as factories and warehouses. Location is typically less important than space and appropriate zoning.
Ways To Make Money
One of the great parts about investing in real estate is that you can earn money in multiple ways. First, the property itself has an intrinsic value that can appreciate along with the market. Second, you can improve the value of the property through renovations. Finally, you can earn money from renting the property to tenants. There are other ways to earn income, but those are the big three.
How To Invest in Real Estate
The simplest way to invest in a commercial property is to buy it with cash. If you have a lot of liquidity, this can be a great option. However, most investors do not have that much money lying around. Plus, financing can help you to get more for your money.
Getting a loan can be an excellent way to buy property. You can spread out the cost and potentially build a bigger portfolio more quickly. There are lots of loan options including conventional mortgages, hard money loans, private lending, and government-backed loans.
Alternatively, you may consider investing in a real estate investment trust. This pools money from multiple investors to buy portfolio properties.
Learn more about commercial real estate investing today but contacting WHW Capital. Our team offers a wide range of commercial real estate financing solutions to help you build your portfolio and generate revenue.
Search engine optimization is an important part of increasing your business’s visibility online. However, creating digital content that will satisfy the requirements of search engine algorithms can be challenging. It can seem like SEO requires mind-reading or black magic to get right. This can make many small business marketers afraid to take risks. Of course, sometimes you have to try things, even if they may not work out. The following five risks are ones you should seriously consider taking.
1) Experimenting With Changes
Trying to tweak your content to work for search engines can be extremely challenging because everyone’s situation is a little different. The best thing you can do for yourself is run some tests. Try changing things up and seeing which version of your content gets the best results. Experimenting and A/B testing will put you on the path to success.
2) Improving Your URL Structure
Your URL structure plays an important role in how search engines interpret your website. Ideally, your domain should be short and easy to remember with subpages including keywords in the addresses. It can be worthwhile to alter your URL structure. However, you should make sure to use 301 redirects to forward your current URLs to the updated pages.
3) Buying Domain Names With History
There are a surprising number of domain names that have expired or not been renewed. These can have some search engine advantages. It may be worthwhile to purchase a domain name with history and use it to attract visitors to your website. It can be an inexpensive way to improve your traffic quickly.
4) Exchanging Quality Backlinks
As you likely know, links to your website can have a profound effect on your search engine page rank. One of the best ways to earn more links is to exchange them with other high-quality websites. It is important to only work with partners that will be relevant to your audience (and vice versa). However, when done right, this can be quite helpful.
5) Overhauling Your Website
Finally, if you think that your search engine optimization is not up to snuff, don’t be afraid to go big when making changes. Every once in a while, websites can benefit from a redesign and update. Like the URL restructuring, you should use forwards when necessary. This can be a slight risk, but it is often worth it if your visitors appreciate the change.
Discover more about SEO techniques today by reaching out to the experts at WHW Capital. A few small calculated risks could pay off in big ways.
Paying for equipment for your business can be a major investment. However, you don’t need to fork over the cash upfront in every case. You can work with a lender to get either a loan or a lease on the equipment. Both of these options have some great benefits. Understanding each of them will help you make the right choice for your business.
When you take out a loan to buy equipment, you own the equipment after purchase. You need to repay the loan and the equipment will likely be used as collateral, but it is yours. This means that it doesn’t matter whether you keep it for a year or a decade. If you keep up with payments, you can use the equipment however much you need.
For capital equipment purchases, this can be very valuable. Ultimately, you can get the best value from your equipment, provided that you expect to use it for a while.
Furthermore, when you are ready to move on from that equipment, you can sell it to another party to recoup some of your costs. Alternatively, you may want to use the value of the equipment to secure another loan. Of course, these benefits all assume that the equipment has some value.
With a lease, you don’t own the equipment but can simply use it for the duration of the lease. Some leases have a buyout option that allows you to purchase the equipment at the end of the term. In some cases, this is for a nominal amount of money (essentially creating a lease-to-own agreement).
One of the key benefits of a lease is that you aren’t stuck with the equipment at the end of the lease. If you don’t think you will need it or if you think it will become obsolete, certain equipment is much better suited by a lease. You limit your risks and simply pay to use equipment when you need it. This is popular with fleets of equipment such as vehicles because it is rare to need a specific piece of equipment for more than a few years.
Additionally, leases have some great tax benefits. You can write off the full cost because it is an expense, not a payment towards an asset.
Discover more about equipment financing and leasing today by contacting the team at WHW Capital.
The customers your company relies on play a pretty important part in your success. Though it might take a lot of time and effort to develop a trustworthy following, your audience can sometimes prove to be the biggest point of concern for your financial future. When clients are not paying for services you have provided, for example, it can disrupt your cash flow in significant ways. If you want to find a practical solution, you may benefit from pursuing factoring solutions. Take a moment to review these points and learn more about this alternative financing service.
What Is Accounts Receivable Financing?
As customers are continuously late on payments, you may find yourself struggling to cover the basic operational expenses for your business. The decision to pursue accounts receivable financing solutions can be advantageous because it gives you the chance to turn your unpaid invoices into valuable assets. The service allows you the ability to put the invoices forward as collateral to secure an asset-based advance. A lender buys the invoices, takes a fee, and provides you with the funds that you are owed. This is an easy and fast solution that business owners can pursue when the budget is tight.
Why Factor Unpaid Invoices?
Factoring solutions are advantageous for several reasons. First, delayed client payments can cause major delays for your company. The disruptions don’t only impact you, but also any other entities connected to your supply chain. By pursuing accounts receivable financing solutions, you take responsibility into your own hands and reduce the odds of major complications. Additionally, business owners can benefit from the fact that this service is an advance and not a loan. There is no fear of taking on extra debt to get through a difficult period.
How To Approach Factoring Solutions
If you want to use AR financing services to the fullest, then be sure to take time to understand the basics. While you are not borrowing any money outright, you are still expected to pay a fee. In some cases, the amount you owe to the lender can be high. Weigh out whether it is more important for you to use the service to access funds immediately, or if you require the full sum and should pursue alternative solutions. As long as you budget appropriately, you should have no trouble using this service wisely.
Factoring services allow you the chance to turn a setback like late client payments into capital fast. WHW Capital offers comprehensive factoring services for businesses across all industries. Contact our offices today to learn how factoring can booth cash flow and growth for your business without debt.