Fidelity Capital News
Economic Comeback Makes Financing an Affordable Option Once Again
Coming into 2014, there was a lot of positive energy about the state of the United States economy. Real GDP and employment were both steadily on the rise, with the nation achieving a new record level of economic output despite having two million fewer workers than it did at its peak over the past decade in the 4th quarter of 2007, just before the beginning of the recession.
Because of the way that the economy has come back from the recession over the past few years, there are once again plentiful opportunities for companies to take out loans or lease the equipment that they need for their operations. The process for obtaining financing has become much easier, and there is a quicker turnaround time after an application with a much greater chance of acceptance. Rates are finally also settling back to reasonable rates, making financing an affordable option for companies of all types.
Time to grow your business
With financing once again being a legitimate option for businesses, this enables organizations to get back to focusing on growth rather than simply worrying about staying afloat financially. By choosing to lease equipment, companies can spur growth in numerous areas of their operations.
One such area is employment. With the savings you can earn from choosing leasing over purchasing equipment, you can hire more talented people to your team to help you improve and grow as an organization. A company is only as good as the team it assembles, so being able to save money while also being able to bring in other people is an invaluable asset.
Leasing also gives you the ability to put more focus on your marketing endeavors. When costs are tight, one of the first areas that businesses scale back on is marketing and advertising. This is understandable, but also is not at all sustainable, because sooner or later you’ll need to push your boundaries as an organization and reach out to new customers. Leasing gives you the savings you need to get back to focusing on your marketing campaigns.
Finally, there is the potential to increase the amount of equipment you use if you choose to lease rather than purchase. Whether you’re in need of computers, vehicles, medical equipment, software, dental equipment, furniture or anything else, leasing helps you to avoid huge loan interest and upfront costs while making it easier to upgrade down the road should you choose to do so. So for example, rather than purchasing one company truck, lease two or three! Rather than purchasing five computers, lease ten! Leasing gives you those kind of options.
Continue to be mindful of your spending
Of course, just because the economy is back on the right track doesn’t mean that companies throughout the nation should get back to the reckless spending they were engaged in before. Stay mindful of your spending and avoid putting your company in at financial risk. Take on debt that you know your company can repay rather than debts that you might not be able to fulfill within a reasonable amount of time. Remember: interest can be a killer.
Consider some of the following questions when determining whether or not you’re taking on a smart expense:
- What will my payments be on a monthly basis?
- How much money will the equipment make/save me every month?
- Do I really need the equipment that I’m leasing, or this particular amount of equipment?
As you consider all of this information, we at Fidelity Capital would love to hear back from you. Tell us about how you are working to expand your business so that we can learn from each other, bring new ideas to the table and help to contribute to the health of both the national and global economy.
Explore. Learn. Do. Contact us today at Fidelity Capital to discuss more about what your company is capable of doing with its finances in the current economic environment.