Whether you are just starting out or you’ve been running your small baking business for some time, investing in baking equipment is the next step to growing your business. If it has become too time-consuming to make batter in small batches, it is time to purchase an industrial mixer. If your oven cannot accommodate the growing number of orders you’ve received, it may be time to lease a larger oven. It can seem daunting to make such a large purchase, especially in these uncertain economic times. That’s why we can provide you with a term loan to start or expand your small business.
Leasing equipment is significantly cheaper as you will be returning it at some point and repairs are usually included, which is one less thing to worry about. On the flipside, leased equipment has usually been previously used and no amount of refurbishing can compare to a brand-new appliance.
At the end of the day it comes down to how long you will be needing the equipment for. If you are planning to move your business to a larger commercial kitchen already equipped with everything you’ll need, it is probably in your best interest to lease for the time being. If you are planning to keep your business on a smaller scale, it may be worth it to buy the equipment new so it can last a long time.
Acquiring a term loan for your business means that you can save money and grow your business more rapidly at the same time. Financing appliances conserves your business assets that you would have had to use otherwise to pay for new equipment. You can pay back an equipment loan over a fixed period of time and eventually the appliances will pay for themselves. There are also additional tax benefits for new and used equipment; some fully deductible. If your business is advancing enough that you need additional equipment, a term loan will help increase your eventual profits.
Making investments for your business is how some of the largest companies in the world got started. We understand the challenges small business owners face and are dedicated to helping your business thrive. It takes money to make money and we want to be a part of your expanding business. It’s time to “bake” that investment (and some cookies!).