Your business has many options when considering how to acquire a new piece of equipment. When choosing between these options and weighing the pros and cons, you may have heard the phrase “100% financing.” And though its meaning may seem obvious, this popular buzzword can actually mean different things depending on the situation.
100% of the price
In some instances, “100% financing” can mean that the financial partner covers 100% of the cost to purchase the asset without requiring a down payment from the customer. This allows the customer to preserve liquidity, save the cash that would have been used for the down payment and spread the cost over time through payments to the financial partner. This option is generally subject to credit approval and is not available to all customers.
Applicable tax payments can also be included in financing. Traditionally, a purchaser would pay the required taxes up front at the time of the transaction. By financing the purchase, the tax amounts may be included in the payments which allows the customer to pay the taxes over the course of the term.
100% of the costs
When buying business-critical equipment, the expenses go beyond just the purchase price and taxes. Depending on the asset, there may be installation costs, scheduled maintenance, and training for employees. Software is becoming more and more important as technology advances, and licenses to keep the equipment running can add up. The right partner can bundle 100% of these additional costs into one simple contract and payment.
This can make it easier to stick to the recommended service schedule to keep your assets running efficiently without worrying about having cash on hand.
Why DLL
The financing options available to your company will likely vary depending on the size of your business and your credit profile. DLL has 50 years of experience as a mid-to-large ticket equipment finance company, providing flexible leasing and financing solutions for our partners and customers.
Reach out to us to see if we can simplify the acquisition and management of your revolving capital asset needs with customisable solutions to help your business control costs while optimising the usage of capital assets and expenditures. Give our asset finance team a call today to start the conversation.
