We've often spoken with business owners, plant managers, and even head engineers that face circumstances where they have to make the terrible choice between walking away from business opportunities versus shelling out a significant percentage of their cash-on-hand to invest in the capacity needed to win new business.
Companies like yours have to invest cautiously - because cash-on-hand and other high-liquidity assets are your safety net. If the business disruptions of COVID-19 taught smaller or privately-held businesses anything, it's that having a financial safety net is crucial to weathering inevitable economic downturns.
So what are feasible ways of capitalizing equipment that minimize your cash outlay?
As an owner or stakeholder in your company, you still have to invest in your business - in adding capacity, replacing spent equipment, etc., and the big picture discussion around the business implications of financing capital equipment is seldom discussed in an easy-to-digest way for anyone that doesn’t come from a financial accounting background. Many capital equipment leasing companies aren't actually familiar with the long-term financial implications of their capitalized leases.
“Good employees that are easily accessible. Solid equipment.” - John B.
© 2024 Rovema