Financial Services & Commercial Lending
How an equipment leasing partner can help your business
Every business wants to hire more employees, get their next contract, and acquire their next piece of equipment to keep the company moving forward. But, cash flow can be a challenge – how can you invest in the future of your business if you’re worried about taking a short-term hit to your bottom line?
For example, a food and beverage company may need to upgrade its equipment for a new job. By leasing new equipment, the company can direct its available cash towards the material and recoup the return on the project before the equipment lease payments are even finalized.
So, where do you go to lease specialized equipment? Who do you work with to get the best possible terms for your budget and circumstances?
The answer is simpler than you might think: a third-party financial partner.
Third-party financing helps businesses find the capital they need to grow their company.
“Today’s business owners are very busy building their enterprises and may not have a lot of time to research lending options,” explained Lee Bergeron VP, GM Equipment Finance - Global Financial Services at Pitney Bowes. “It’s why their default choice is to go to the bank – it’s the one financial resource they have. But it might not be their best option because the bank is very limited in what it can do and in the products it can offer.”
“The equipment finance arena is a whole other way to structure and acquire equipment,” he continued. “It’s a way for us to craft a solution that makes sense for the customer.”
Third-party financers are not looking to replace banks, Bergeron said. Your bank will still be a good pillar for regular financial support, but a third-party partner can help you invest in and grow your business faster.
“We want to augment the products and services the bank is offering,” he stated. “We want to help them acquire equipment that makes sense from a cash flow and business service standpoint.”
Any businesses can benefit from a finance partner to help grow their company. But what does the right partner look like?
Money is fungible, it all spends the same, but it is really the intangibles that become increasingly important in a financing situation, Bergeron said. A good finance partner knows how to help business owners structure a deal, and can anticipate situations that may arise in the future.
For example, a construction company will likely face seasonality issues. A financial services partner can help that construction company structure financial solutions for the slower winter months. A deal can be structured with “rental holidays,” where payments are perhaps made nine months out of the year instead of 12 months. The construction company will then pick up the payments again to match cash flows, but the lease continues unabated the entire year.
“You want someone that not only understands the financial product they’re selling to you to help you craft a more seamless solution, but you also want someone that understands you and your business,” he said.
Most importantly, the right finance partner gives you the opportunity to focus on what you know best: running a successful company.
Pitney Bowes Global Financial Services has 30 years of experience in providing equipment financing expertise for businesses in a variety of industries.