In the last few months, consumer behavior has changed to adapt to the new normal. According to reports, global e-commerce has grown by nearly 20%. Although this is good news for online retailers, it also presents a new set of challenges.

As demand continues to grow, business owners are faced with the task of keeping up. It can be difficult for those who don’t have the resources. But finding the capital to invest in new equipment, more manpower, and other solutions is a problem in itself.

Discover how a financing plan can help you fulfill your logistics needs without creating additional expenses for your business.

What is Capital Equipment Financing in Logistics?

Capital financing in logistics is often concerned with equipment. Business owners choose to get equipment financing to acquire the capital necessary to purchase new equipment when new needs arise in their industry – like a move to online orders and delivery. The equipment then becomes the collateral for the loan. And you can freely access and use the equipment as long as you keep up with the loan payments.

What Are Growth Opportunities?

Capital equipment financing has become popular because of the advantages it offers, such as:

Increase Working Capital

With a financial plan in place, you reduce upfront costs for new equipment. It allows you to increase your working capital and redirect it to other operating expenses or income-generating activities. Alternatively, you can use it to compensate for cash flow shortages or other emergency expenses.

Utilize New Equipment

Take advantage of the latest technology available. One of the reasons businesses hesitate to upgrade their technology is the sheer cost. When you purchase new equipment, you’ll likely hold off spending on other essential aspects of your business. With an equipment financing plan, you don’t have to empty your current operations budget to acquire the piece of equipment.

Enjoy Tax Benefits

In capital equipment financing, the payments you make to your lender are divided into two categories. These are the principal and the interest. The latter can be tax-deductible. Also, you have the option to file the entire payment as a business expense, allowing you to deduct your lease payments from your annual tax reports.

Free Up Lines of Credit

Instead of applying for loans to fund new purchases, you can use equipment financing plans. Doing so frees up your credit lines for other concerns. If you run into a working capital shortage, you have credit lines available to apply for a business loan. An equipment financing plan helps you solve the problem without affecting other areas of your business.

Regents Capital: Your Equipment Financing Partner

Industry experts agree that demand is growing for better logistics and supply chain management in these uncertain times. Preparing for it by acquiring the necessary financing plans helps you create growth opportunities for your business.

Regents Capital Corporation can be your commercial equipment financing partner in getting your business ready for expansion.

Talk to our team to find out more about our financing products.