The first half of 2020 put businesses in a tough position. Offices had to close down and employees had to work at home, and though it worked better than expected, there were still many challenges. Although it’s relatively safe to go out as long as social distancing is observed, it seems like remote work will remain a popular option in the future.
If your company decides to implement remote work temporarily or for an extended period, equipment financing options will allow you to manage your costs, and your employees will need business equipment to operate fully.
What Type of Equipment Should You Provide for Remote Workers?
Well-managed remote work increases cost savings and employee productivity. It could also reduce environmental impact as people choose to stay at home rather than drive to work. But the success of telecommuting means shelling out expenses for business equipment.
As an employer, you may need to purchase business laptops and communication accessories (e.g. headset and webcams for video conferencing). Some employees may need two monitors for their home office setup. If budget and logistics allow, you may also want to consider investing in ergonomic office chairs and desks that could boost employee productivity at home.
How Can You Finance Your Business Equipment?
You have several options for financing your secure remote work equipment for your employees. Consider the following before choosing the most suitable one for your situation:
1. Equipment Line of Credit
This is a fixed-rate type of equipment financing that gives the funding you need for up to one year in advance. This means you’ll have a secure line of credit for any equipment acquisition you have planned for the next 12 months.
2. Capital Lease
This works a lot like traditional loans. You get 100 percent financing for your required equipment and you have exclusive rights to purchase and use the equipment. This is ideal if you’re planning for long-term equipment ownership.
3. True Tax Lease
This type of financing allows you to finance up to 100 percent of the equipment cost along with related costs, like delivery and installation. In addition to tax advantages, this option provides lower up-front costs and monthly payments.
4. Equipment Finance Agreement
With this type of financing, the borrower is the titleholder. As your lender, Regents Capital serves as a lienholder on the purchased equipment. An EFA is secured only by the financed equipment, not any other business assets that you have.
5. 100% Reimbursements
This financing option lets you monetize up to 100 percent of the equity for business equipment purchases within the last 12 months. It lets you retain the use of the asset and have the option to reinvest your equity in other business plans.
You also have other financing options. There are terminal rental adjustment clause leases, which give you the option to purchased leased equipment; synthetic leases, which provide a fixed-price purchase option, and working capital loans, which typically cover unexpected losses.
All these solutions can be tailored to your unique business needs.
Find the Right Equipment Finance Solutions
Regents Capital has over 100 years of combined experience in equipment leasing and financing. We’ve processed over $150 million worth of equipment finance transactions. We can tailor business equipment financing solutions specifically for you.
Call us today at 888 901 4207.