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Frequently Asked Questions About Equipment Financing

Fidelity Capital is pleased to provide a wide variety of equipment financing services to clients in all sorts of industries. For smaller companies especially, these services can be of great use for helping to promote business growth. However, smaller and newer companies are also less likely to have experience in financing equipment, which means they tend to have a number of good questions about equipment financing.

Here are some of the most commonly asked questions we receive about equipment financing, and a bit of helpful information in response to each:

Q: Who finances their equipment?

Approximately 85 percent of all businesses either finance or lease their equipment. These businesses range from Fortune 500 companies to mom-and-pop corner stores in small towns. Just about every company can benefit from equipment financing somehow.

Q: Why do companies choose to finance equipment?

Most of the time, it’s because it makes the most financial sense. For one, financing equipment allows businesses to save a good chunk of their cash flow for other important business expenses. For example, it can be hard to engage in effective marketing when you have to sacrifice your cash flow for paying for equipment.

Q: What type of equipment can I finance?

The growth of the financial industry has allowed us to expand finance implementation. We currently offer financing services for dental and medical equipment, construction equipment, transportation equipment, cloud computing equipment, manufacturing equipment, technology equipment, software and much more. Ask our team about whether we can assist you with the specific pieces of equipment you need for your company.

Q: How much can I finance without financials?

Currently we are seeing application-only approval up to $500,000. This gives us plenty to work with for most of our clients.

If you have any additional questions about equipment financing, we encourage you to contact us. We are happy to work with you to figure out the best strategies for getting the equipment your company needs at a reasonable price.

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Software on the Cloud: A Revolutionary New Business Model

Cloud software, often referred to as Software as a Service (SaaS), is a relatively new software distribution model that has become extremely popular within the last couple of years. In a cloud software model, vendors or service providers host their applications online and allow people to use the software through a monthly subscription, rather than paying full sticker price to own a copy of the software.

This model comes with several inherent advantages, the biggest of which is flexibility. When you own a copy of a program, that application is then bound to the computer you installed it on. However, when you become a subscriber to a cloud software service, you are able to access the software from anywhere with an internet connection. This increases mobility and accessibility, which is especially important for larger companies or companies whose employees regularly work remotely.

Today, there are a wide variety of different applications available in a cloud software model. Here are a few of the most popular:

  • Salesforce (www.salesforce.com): Salesforce offers a customer relationship management (CRM) product that gives companies an ability to connect to their customers in new, much-needed ways. As a form of CRM software, its primary elements include sales force automation, opportunity management, growth prediction, development and maintenance of client relationships, direct online communications and other services to help create a stronger overall customer experience.
  • Office365. There are so many businesses that regularly use Microsoft Office programs such as Word, Excel, PowerPoint, Outlook and more. Now, Microsoft packages those services into Office365, a subscription-based cloud software model allowing people to get different levels of online access to these products.
  • Adobe Cloud. Adobe has put many of its most popular features into a cloud-based model. The Adobe Creative Cloud, for example, contains such programs as PhotoShop, LightRoom, Premiere Pro, After Effects, Illustrator and more. Adobe’s establishment of a cloud-based software model has been one of the biggest influences in it becoming such a popular method of software distribution.
  • SugarCRM. Another CRM system, SugarCRM allows for mobile CRM, social CRM, customer support, marketing campaigns, salesforce automation and other elements. SugarCRM is one of the more popular CRM tools available on the market, with will more than a million active users.
  • Microsoft Dynamics Exchange. Microsoft now allows users to set up their Dynamics CRM online. When used in conjunction with Office 365, users can route CRM email through Exchange Online. The result is a more streamlined CRM experience.

Fidelity Capital offers leasing and financing services to help you get set up with the cloud software of your choice. For more information about the benefits of this model and how to get started, contact our team today.

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How to Eliminate Unnecessary Spending at Your Business

How to Eliminate Unnecessary Spending at Your Business

As a small business owner,  you understand exactly how important it is to maintain control over your finances. However, it’s extremelyeasy to slip into some bad financial habits and spend money that you don’t necessarily need to. These little decisions can add up over time, causing you some major financial distress down the road. Here are some tips on how you can avoid bad spending decisions with your business and maintain good financial health:

  • Purchase only the things your business truly needs. Sure, it might be nice to throw out money for lunches for your employees or to spend money on the latest tablets, computers and other gadgets. But how many of these things are really necessary to run your business? Especially when you’re first getting started off with your small business, you need to keep expenses to a minimum to ensure that you can make a profit. Only buy what you need for your business operations and for your employees to efficiently get their work done.
  • Shop smartly. Of course, there are some types of expenses that you can’t avoid, including rent, supplies for your office, internet service, electricity and other types of payments. Be sure to shop around for these services so that you can get the best prices available. Chances are you’ll be able to find some money-saving deals on at least a few of your regular expenses. Also, don’t be afraid to ask your regular suppliers or vendors for discounts; these companies often are more likely to give deals to faithful clients.
  • Engage in online marketing. Rather than putting most of your advertising spending into print, television or radio, focus your marketing on the internet. It is significantly less expensive and studies have shown that it is likely more effective as well. Get a good-looking website, regularly update a blog and engage with customers on social media.
  • Finance your equipment. Purchasing furniture, computer hardware, vehicles and machinery can be extremely expensive, especially if you have to take out a loan and deal with high interest charges. Instead, consider leasing your equipment. You don’t have to worry about the rapid depreciation of the equipment and it’s extremely easy to upgrade whenever you are ready to do so.

For more financial tips and information about leasing your business equipment, contact us today at Fidelity Capital.

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The Benefits of Leasing Medical Equipment

The Benefits of Leasing Medical Equipment

Many healthcare organizations put off getting the most up-to-date medical equipment that they need, because the price of purchasing that equipment is simply too high. This has been a particularly significant issue in recent years, thanks to the economic downturn. However, equipment leasing may be the best answer for your medical organization. It allows many healthcare networks to get the equipment that they need to provide the best possible patient care while still being conservative with their funds. Here are some of the greatest benefits of leasing medical equipment:

  •  Tax benefits. The IRS does not count some leases as purchases, and instead considers them to be tax-deductible overhead expenses. Therefore, there is a good chance that you will be able to deduct lease payments from income, reducing the net expense of your lease.
  • Flexibility. As your healthcare facility grows and its needs continually change, you will need to be flexible enough to upgrade your equipment at a moment’s notice. The terms of your lease may allow you to upgrade or add equipment at any time during the term of the lease.
  • Avoid depreciation. Major healthcare equipment depreciates quickly. Rather than purchasing it and feeling like you have to hold on to this rapidly depreciating equipment long after it has any value, you can get it for a certain period of time under a lease for much less money.
  • Improved money forecasts. When healthcare facilities choose to lease their equipment, they can much more accurately predict their cash requirements because they know the amount and value of the payments they will have to make. There are no additional floating or surprise fees that come with equipment leasing that you need to worry about.
  • Easier than loans. Leases allow healthcare facilities to avoid having to deal with large down payments, reviews of client lists, cash flow projections and other complications, which makes the entire process significantly faster and easier on the facility.
  • Speed. Applications for leases can be approved within a few hours, rather than the significant amount of time it can take for a loan to get approved.

For more information about medical equipment leasing, we encourage you to contact us today at Fidelity Capital. We are happy to answer any questions that you have about our services!

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Emerging Technologies & Their Impact on Businesses

Emerging Technologies & Their Impact on Businesses

If you run your own small business, it’s important to stay on the cutting edge of technology to take advantage of opportunities to become more efficient and keep yourself ahead of the competition. Doing so gives you much greater adaptability and flexibility with your business, which is especially important if your company is just getting off the ground or in a period of rapid growth. The following are a few of the technologies that we’re likely to see become even more important to small businesses throughout 2014. We encourage you to think about which of these technologies you’re already making use of, and if there are any opportunities for you to increase their use. Cloud technology Cloud-based software has been rapidly growing in use over the last couple of years, and you can expect that growth to continue in 2014. It is both flexible and scalable, and allows you to have access to a significant amount of storage space without having to purchase additional computer servers or hard drivers. Plus, you can then access this information anywhere at any time from any device that has Internet access. You no longer need to worry about using flash drives or CDs to make your information portable. Mobile devices The technology used in mobile devices continues to evolve, and they have become increasingly important in the business world. Devices such as smart phones and tablets have changed the way that small businesses operate. Today, these devices are built to have better software, better Internet capabilities, longer battery lives and bigger, more responsive screens. With their help, you and your employees can conduct business from anywhere at any time. Social networks Social networks themselves aren’t exactly new, but the tools used to glean information from them are becoming more sophisticated. Some of these networks have their own built-in analytics systems used to track engagement data from followers. They also have newer, more up-to-date advertising systems in place to give businesses a better chance at reaching their target audiences. Now more than ever, businesses can use social media to get a true insight into what their customers think about their brands. This year, make a commitment to using these technologies to further enhance your operations as a business. The longer you wait to get started, the more you risk falling behind. If you need to explore financing options, don’t hesitate to contact the experienced team at Fidelity Capital.

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What Should You Do After a Business Loan Denial?

What Should You Do After a Business Loan Denial?

What Should You Do After a Business Loan Denial? The denial of a loan can be a major setback for a business. However, if this has happened to you, it’s important to note that there are a number of options available and certain steps you can take to help your business get the funding it needs. Considering that your first step may be to reapply for a loan or try a different lender, keep the following tips in mind: Know what banks are looking for When you apply for a loan, the lending institution will thoroughly analyze your business and check for a good credit score (over 700), a proven ability to repay the loan with interest over time and the potential for collateral with the loan. By knowing what the banks are seeking during this process, you’ll be able to strengthen those areas and improve your chances of success. You should also regularly check your credit score, and can do so by obtaining your report from a variety of different sources for free using the provisions of the Fair Credit Reporting Act. Once you have your report, check back on the Federal Trade Commission website to find tips on improving your score. Investigate other lending options You don’t necessarily have to go to a bank to get the capital you need. Other sources could be more flexible and better suited for your company. Examples of these alternatives include:

  • Equipment leasing. Instead of pursuing a business loan to purchase equipment, you may be able to work with an equipment leasing provider. This saves significantly on costs, while allowing you to more easily update your equipment and technology as time goes on.
  • Peer-to-peer lending. In this structure, prospective borrowers fill out an application online, pay a fee and then receive a rating according to the risk associated with lending money to them. You then get matched up with organizations that could be interested in funding your business or project.
  • Niche lending. Some lenders focus on specific industries only, so depending on the type of business you have, a niche lender that understands the work you do might be a great option.
  • Local lending. Other lenders are specifically focused on providing funding to businesses within their local geographic area, with the goal of strengthening business and the economy in their communities.

Make your business as profitable as possible If you have products or services that just aren’t selling, get rid of them. If you are operating in an inefficient way, it may be time to overhaul your processes. You might consider bundling services or products — or forming a partnership with another organization. After a business loan denial, don’t wait to take action to do what is right for you and your business. If you have questions about these options, including equipment leasing and how it can help your company, contact the team at Fidelity Capital right away.

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Staying Strong Through the Holiday Slowdown

Staying Strong Through the Holiday Slowdown

For businesses that remain open during the holiday season, those couple weeks can be a slow time. Clients that you do business with may have closed up shop, and many people take time off to spend with family in the week or so between Christmas and New Year’s Day. Within your organization, your employees might be taking vacations and half-days. However, there are still ways you can keep your operations running strong so that you can come back from the holiday season and hit the ground running. Here are some tips to consider: Boost your social media presence. If people are spending less time at work over the holidays, chances are they’re spending more time on social media. Take advantage of this by interacting more with your audience through Twitter and Facebook — or offer special holiday deals. It’s a simple and inexpensive way to keep your brand engagement going strong during an otherwise slow period for business. Keep an eye on the calendar. Most U.S. markets are closed on both Christmas and New Year’s Day. These both fall on the same day of the week (a Wednesday this year). Therefore, it might be best to focus your marketing efforts later in the week. On Christmas Eve and New Year’s Eve, people are still focused on the holiday and the tasks associated with preparing for them. Any press releases you want to submit, advertisements you want to put out or deals you want to announce should be strategically planned so that they do not coincide with the holidays themselves. Use holiday search terms.  Improve your search engine optimization (SEO) this holiday season by getting involved with popular search engine terms for the holiday season. You can use tools like Google Trends to help figure out which search terms are most common for the season, and then figure out how to employ those for your business and industry. Be genuine. Be generous in your well-wishing for the holiday season. Let your customers, clients and employees know how much you appreciate them and that you hope they have a great holiday with their families. Send out little notes through the mail or email, and put up holiday wishes on your social media pages. This will improve your brand image and keep your company in people’s minds when they come back from the holiday. Assume people are listening.  Finally, just continue to go about your business as you normally would and assume that people haven’t tuned out for the holidays. The worst thing you can do is slow down for a week or two simply because many other people have closed up shop for the season. The best way you can ensure that you start off strong in January is to continue strong operations through the end of December. We hope these tips help you to find some success this holiday season and beyond. And if you need to explore your options for business equipment leasing in 2014 and beyond, don’t hesitate to contact Fidelity Capital.

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The Wide-Reaching Benefits of Business Equipment Leasing

The Wide-Reaching Benefits of Business Equipment Leasing

Which is better: buying or leasing equipment? This is a question many entrepreneurs and business owners struggle with on a regular basis, and unfortunately there’s no “one size fits all” answer. The ultimate choice you make will depend on the size of your business, your specific equipment needs and the amount of capital you have to invest. In many situations, business equipment leasing is the way to go — for a number of reasons. Some of the key benefits of leasing include:

  • Money savings: This is probably the greatest advantage of equipment leasing, as it can save you a significant amount of cash in the long run. Through equipment leasing programs, you can make payments over a set period of time in a manner that properly aligns with your budget. This gives you more working capital to devote to other important business expenses and expansion efforts.
  • Tax benefits through Section 179: This law allows businesses to deduct up to $500,000 in new and used business equipment. While these benefits do also apply if you actually purchase the equipment, the IRS allows you to deduct lease payments under Section 179 as long as your business makes use of the leased equipment.
  • No more obsolete equipment: Equipment leasing is one way to help your business constantly stay on the cutting edge of technology. Engaging in short-term leases enables you to make upgrades to newer equipment much more quickly and in a financially efficient manner than if you were to purchase the equipment outright. When you buy technology, you are stuck with it unless you can sell it, and even then you’ll have a difficult time finding buyers who are interested.
  • Credit preservation: Keeping your line of credit healthy should always be a priority for any business owner. Equipment leasing enables you to keep that line open and strengthen your cash flow, making it easier for you to get funding for growing your business and paying for regular operational needs.
  • Flexibility and ease: Applying for a lease is quite easy, so you can have the equipment you need in your business almost immediately. You also have the flexibility to work within your budget constraints and make any upgrades as you need them.

Fidelity Capital has become a leader nationwide for helping businesses with their equipment leasing and financing needs. The company has outstanding relationships across the country, with a network of preferred vendors that give you the knowledge and resources you need to truly grow your business. To learn more about business equipment leasing and if it’s right for your company, we invite you to contact us.

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Choosing the Right Capital Equipment Financing Provider

Choosing the Right Capital Equipment Financing Provider

It’s important for your company to get the most up-to-date equipment possible so that you can stay ahead of the technological curve. To accomplish this, you should consider financing your equipment through a leasing agency. Leasing your equipment comes with a variety of benefits. The most notable is that you can save a significant amount of money on leasing, leveraging the high-tech equipment now at your disposal, while avoiding the financial hit that comes when you must get rid of equipment that becomes obsolete or no longer usable. Compared to bank loans or paying in cash, lease financing also gives you much greater flexibility in your payment plans. No two small businesses are alike, and depending on your industry you might have unique needs. With this in mind, choosing the right equipment leasing company should be a process that narrows down the best fit for you. The following are some important factors to consider when choosing your equipment leasing provider:

  •  Experience: Leasing firms that have more experience in providing these types of services will be more likely to understand the various options available to you. They can make the best recommendations for your particular needs and assist you throughout the financing process so that it goes as smoothly as possible.
  • Owning vs. using: Some leasing companies many prefer that you own the asset they will be leasing. When this is the case, consider choosing a provider that offers lease-to-own plans. If you are simply concerned with using the asset rather than owning, a regular leasing plan is more likely to give you what you need.
  • Size: The sizes of leasing providers vary wildly, from large banks to small, independently owned firms. A smaller firm is more likely to give you the personal attention you need, while a larger organization might have more resources available. Your best approach is to find a company that offers the best of both worlds — great service combined with flexible options.
  • Reputation: Last but certainly not least, you want to be sure that the organization you choose to work with has a reputation for success. Believe it or not, large banks reject most small business loans. When it comes to equipment leasing, you need a provider that ensures your financing plan gets accepted and that the process goes smoothly for your business.

Fidelity Capital is a national lender for equipment financing and leasing. Due to the relationships the company has built over the years, it has a vast network of preferred vendors ready to help your business. When exploring your options, take these guidelines into consideration and find the leasing provider that matches your needs perfectly.

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