The End of Costly Replacement Emergencies
The commercial truck industry is requiring everyone to upgrade to more emissions friendly engines. Many industries are upgrading equipment to include GPS asset tracking technologies. IT equipment needs to be upgraded seemingly every hour and a half. Whether part of a regulatory move, efficiency gains, or the requirement to keep up with the competition, the word “upgrade” is a big impact on a business owner’s life. And a bigger impact on their cash position.
A little planning helps.
Most of the time, businesses understand the seemingly never-ending need to reinvest in their commercial equipment. They don’t plan for it. More than 8 of 10 small business owners only think about upgrade or replacement in the break/fix emergency. No wonder everyone thinks of replacing the equipment they need as painful. Waiting until these big events to look at upgrades or replacement can be a very costly endeavor. Did you know that businesses that plan for capital equipment acquisitions versus ones that wait until the wheels fall off have nearly 20% lower equipment acquisition costs?
Sinking cash into equipment is a sinking feeling.
Another major reason why businesses feel the pain of upgrade in the cash drain. Big hits in cash flows for unplanned equipment needs hurt. So why do it that way? Virtually all classes of commercial equipment lose value. You wouldn’t knowingly invest $50,000 in a stock you know is going to be worth $25,000 in five years. But time after time, business owners drop huge down payments on their commercial equipment or pay cash outright. Even if you produced 3x the revenue for equipment cost, what’s your return on that investment? There is no real merit to owning 100% of an asset worth half of what you paid for it when useful life ends. Because of this, upgrades can be painful.
Ease your pain.
What if you just paid for what you use? A simple monthly payment that’s budgeted for every month for the use of the equipment. And when the equipment is ready for replacement or upgrade, you get the new model and keep the monthly payment stream going. Even mobile phone companies have caught on to this. With the introduction of no down payment monthly financing for your phone, nearly 40% of cell phone users are now on the monthly plan. Rather than it being $200-$500 hits to personal cash flow every few years or when your phone goes swimming, customers pay their $25 per month. And then every few years, pick up the new model. Taking this approach to commercial equipment will ease your pain as well.
For more than 30 years, TimePayment has offered flexible monthly payment options for equipment needs starting at $500 and reaching to $500,000 and beyond. From startups to growing national brands and local dealers to major equipment manufacturers, over 1 million companies have trusted TimePayment’s innovative technology tools and creative capital to address equipment needs.