Posted on

The Benefits of Financing Furniture

When you’re investing in a new business, sometimes cash is hard to come by. But there is one way to spend less money and that is to finance office furniture instead of buying it outright. It’s a great option instead of renting it or buying it with cash. Renting it can be expensive too as a long-term option. But when you finance office furniture and equipment, you’re only making a small monthly payment, and you own the furniture at the end of the contract.

Business loan buttonNow business offices when starting out need office furniture and equipment to start operations, but often they don’t have the extra money for it. Sometimes your funding options are limited, or your line of credit is almost gone too. So, what can you do for acquiring what you need?

A lot of finance companies will offer different options for financing furniture and equipment. What you need to do is to determine what fits your needs and financial structure. For a company starting out, whether small or mid-sized, financing furniture and office equipment instead of using cash does have benefits, but also it has risks though. You still need to calculate the costs versus the gain. There are several things to check out before signing on the dotted line too. These things would be exactly what is the type of furniture and equipment being purchased, your cash flow for payment, cost-effectiveness, your other credit demands and long-term capital needs.

So, how can you figure out what is best for your new company? Things to keep in mind are your current budget, your tax situation, how much equipment and furniture you’re going to need. Also, it’s important to consider your company’s future capital needs in relation to future growth.

Below are some benefits to financing instead of using cash on hand:

  • planning with a notebook and calculatorPreserving your capital: Most businesses consider preservation of capital important, so financing furniture and equipment is an attractive option. When you are first opening a business, investing large amounts of money in these things can be a risk because your business hasn’t made a profit yet. When financing office necessities, the payment is only a small part of your investment and can be spread out over a period of time then.
  • Financing helps to preserve capital: When you have a budget without a large one-time expenditure, it keeps your budget consistent. With financing, it keeps your expenses even too by only spending a small amount each month instead of having a huge outlay all at once. A loan lets you lock in your payment at a certain interest additionally for the length of the loan. This way you can plan for each month instead of having an emergency and wishing you still had your cash to handle it.
  • Financing lets you purchase more: When you finance instead of paying cash, it allows you to purchase more of what you need. Say, for instance, your employees are asking about the ergonomic chairs which are easier on a person’s back and make an employee more productive. With financing, you would be able to afford them. When you have a better class of furniture in your office, this will boost morale and productivity; and increase your professional image with your clients.

What type of furniture and equipment can you finance for your office?

Well, you can finance work desks, ergonomic chairs, reception desks and furniture for the reception area. File cabinets, storage shelves, lighting, cubicles, conference tables, conference boards and even white screens can be financed. You can finance printers, copiers and even video conference equipment to fill your needs.

Imagine starting out your business with everything that you need, and you only have to make one payment a month? Your business is up and running, the reception area is welcoming, and the employees all have their desks and ergonomic chairs. The atmosphere is one of excitement and anticipation as your first customers show up for their appointments.

Of course; you need a good business plan to succeed, but you can’t succeed without furniture and equipment.

All this can happen with the right office furniture and equipment then, and it can be yours by simply financing your dream.