Investing in new equipment can be a wise decision for businesses that wish to secure their financial future in the current high-inflation environment.
A new study issued by MHEDA reported that despite warnings of a looming recession, new orders for material handling equipment are predicted to increase until early 2024.
The study highlights the resilience of these orders in the face of economic pressures, including higher interest rates, stricter banking regulations, limitations on access to capital by national and regional banks, and confusion and uncertainty in the financial industry.Are you considering acquiring new equipment but unsure when to do so? The timing of this decision can significantly impact your business’s success. To make an informed decision, there are a few factors to consider. Let’s take a closer look at what you need to know.
Why Equipment Financing Remains a Viable Option Despite Rising Interest Rates
Investing in new equipment can be a wise decision for businesses that wish to secure their financial future in the current high-inflation environment. Asset finance helps you purchase the required equipment with confidence before prices rise again. This stability ensures that businesses can plan with certainty and allocate resources efficiently without worrying about rising costs.
Equipment financing offers lower upfront costs and improved cash flow, providing flexibility to access equipment with no down payment required. This preserves capital, which can be allocated to other expenses or investments, and creates more cash reserves during economic downturns.
There is the potential to significantly increase a business’s purchasing power, offering access to higher-quality equipment that might otherwise have been unaffordable. Additionally, payments are generally lower than traditional debt payments. This allows for customization of the equipment configuration to match the business’s unique requirements perfectly.
It also makes it easier and more cost-effective to replace outdated equipment. You can avoid the costly inconvenience of managing outdated equipment that requires constant maintenance and lowers production and efficiency rates.
For over 23 years, First Financial Equipment Leasing has been serving various markets in the US and Canada, building partnerships based on trust and transparency. We are vendor-neutral and negotiate favorable terms with competitive rates, with a deep understanding of the unique challenges and opportunities in the material handling industry. Our financial experts can help assess whether a deal meets your business’ working capital or growth potential.
Please reach out today to find out how our financing solutions can empower your business to achieve long-term success.
To access MHEDA’s Economic Advisory Report, visit https://www.mheda.org/industry-resources/economic-insight-and-resources/