Don Seeley

Running a business offers little to no time for waiting. When you need equipment as soon as possible, you need answers fast. But what if you don’t have the cash to get equipment? Even worse, what if you are left waiting to get your application approved? Equipment financing stands out from traditional lending by offering you a fast way to get funds for equipment when you need it. But not all lenders are alike! Don’t waste valuable time jumping through hoops applying everywhere. The best way to evaluate which lender is worth your effort is to understand their application process and standard turnaround time. Watch the video or read the whole article to peek behind the curtain of Beacon Funding’s fast equipment financing process. If you want to skip the reading, talk with a financing consultant today to see how you can get equipment financing sooner rather than later. Talk with a consultant today: www.beaconfunding.com/benefits Apply for financing: www.beaconfunding.com/apply How Does Equipment Financing Work to Quickly Grow Your Business? Applying for a loan can take a lot of time, costing your business opportunities. When you need to move quickly, equipment financing offers a fast turnaround to get equipment for your business. Here’s how: Completing a financing application takes less than 10 minutes. Instantly submit your bank statements with hassle-free secure electronic verification. Receive an answer on your credit application within 24 – 48 hours. After you apply for equipment financing, Beacon Funding takes care of the rest. Your dedicated rep will work to get you the quickest turnaround time possible. Get Equipment in Your Hands Much Faster When you have an opportunity to grow your business, you need equipment that gets the job done quickly. In those moments, you don’t have the time to waste saving up cash. With equipment financing, you can get the funds to afford the equipment you need to expand now. That means you can cut down on your waiting time and set yourself on the straight path towards equipment ownership. And because you can get 24-48 hour credit decisions, you can make business decisions much faster. Beacon has helped thousands of businesses nationwide quickly acquire the funds to get equipment that works for them. Application Built for Your Business Convenience The old days of applying with paper are over. Finally, it’s easy to apply for equipment financing – it only takes a couple of minutes to apply! When you apply, you can instantly use tools like Decision Logic to send over your bank statements from your mobile phone. Just click a link, enter your information, and then you’re done! How easy is that? You can also apply from Beacon Funding's mobile app. Click here to download it for free. Move Your Business Forward Quickly With equipment financing, it’s realistic to go from application to acceptance in 2-3 business days. And it’s all done in six simple steps. Here’s how it works: Application Discuss Expectations Approval Approval Letter Documentation Delivery & Acceptance In these six simple steps, you’ll go from application to equipment ownership in a snap. Start growing your business and get a quick turnaround for your equipment financing when you apply at beaconfunding.com/apply Have Questions? Get Fast Answers When Your Business Needs Them For over thirty years, Beacon’s dedicated financing consultants have become experts on changing the way business owners apply for financing. They’ve made the process seamless for customers to get answers when they need them. Reach out to us and you’ll see why Beacon’s customers describe our process as flawless. Schedule a time to chat at www.beaconfunding.com/benefits

No matter how fast things change as a business, it’s always important to remember your roots. Lebleu’s Towing was originally started as a father-and-son towing business in 2006 by Gerald and Jeremy Lebleu in Kannapolis, North Carolina. These two were hard workers who, due to lack of equipment, had to work around-the-clock to keep up with the competition. As Jeremy Lebleu, manager (and son), can attest, expanding Lebleu’s fleet was the best decision he’s made for the business. He says, “I worked 24 hours a day, seven days a week for four years. I was never able to take a day off or spend time with the family, and now I’m able to take vacations. The business runs itself now.” Lebleu’s Towing Snapshot: Established in 2006 in Kannapolis, North Carolina Started as a father-and-son towing business with 1 truck and 2 employees doing 300 tows a month Expanded to 9 trucks and 9 employees doing 1,000 tows a month Acquired 7 well-maintained trucks through Agero Truck Financing Perks program offered by Beacon Funding Expanded business 20 miles away in Charlotte while overseeing from a management role More Trucks Means More Business Back in 2006, Gerald and Jeremy started Lebleu’s with one truck and two employees. They couldn’t keep up with the demand for tows, so expansion was key. After they chose financing to expand, it’s grown to a full-fledged fleet including nine tow trucks and nine employees where the phone continues to ring off the hook. Even with all these shiny new trucks, Lebleu’s has to consider the 10 other towers in the area. The business is able to keep a competitive edge through offering cheaper prices and emphasizing customer service. “We call the customers before we go [to tow them]. We make sure they’re in a safe place, not blocking traffic. Keep them calm. We try to get there as quick as possible. Keep in contact with them the whole time [before we arrive].” Lebleu’s has customer service down, but how were they able to expand to such a large fleet with financing, you ask? Beacon Funding was the answer. Learn more about how tow truck financing works here. A Little Help from Their Friends In the beginning, the Lebleu family was using a roadside assistance motor club to get more towing jobs, but found another solution. They decided to become Roadside Assistance Service Providers in the Agero Network and never looked back. Not only did they find a better way to get more calls, but also they found out about Beacon because of their ongoing Truck Financing Perks program and partnership with Agero. Jeremy financed his first truck with Beacon Funding in March 2012, and the rest is history. After nine trucks, he has the tow business that surpasses them all. Six of them, including one refinance, were from the help of Beacon and Agero Truck Financing Perks. Agero Truck Financing Perks is a program provided by Beacon Funding and Agero that helps Agero providers like Jeremy use his Agero payments to pay off his trucks (via DirectPay) and get perks like Visa gift cards when they finance new trucks. In August 2015, Agero set up Lebleu’s in new areas spreading them out to Charlotte —20 miles away from the business. Business was growing rapidly, so Jeremy enlarged his fleet further to cater to the bigger reach. Jeremy pointed out how this gave him a distinct advantage over the competition. “Others were losing trucks while we were gaining. [They were] slow to respond to calls, had higher prices, a little bit of everything.” Lebleu’s gets 600 more tows a month through Agero with the help of Beacon Funding. Their Fleet Growth Continues Even with this large fleet, Jeremy is passionate about maintaining wherewithal to get more trucks. The latest financed truck he picked up one day, drove it five hours home, then had it painted his company’s colors the next morning. Jeremy has a commitment to his business and wants to keep growing his operations in order to serve as many people as possible. Beacon and Agero will continue to support that mission by acting as a branch to help Lebleu’s flourish further than its roots. See if your business can qualify for affordable tow truck financing here.

Your time is your most valuable resource as a tow truck company. It pays to get jobs done right and fast. The more calls you answer, the quicker you increase your revenue! When a truck breaking down can bring your business to a halt, it’s important to have a plan to keep operating. While it's impossible to predict when you will need to replace or add trucks to your fleet, you can depend on Beacon Funding for the financing you need. Read on to discover how fast, easy, and affordable the tow truck financing process can be. Shift your business into higher gear with tow truck financing Whether you’re looking to increase your service radius or upgrade to a more dependable model, tow truck financing makes it easy to drive your business forward. Financing allows you to spread out your truck’s purchasing cost into low monthly payments, conserve your liquidity, and get the truck you need into your fleet quickly. In this article… How To Conserve Your Cash and Let Your Next Tow Truck Pay for Itself Benefits of Financing Your Tow Truck Estimate Your Next Truck's Low Monthly Payment Finance Your Next Tow Truck with Beacon Funding How To Conserve Your Cash and Let Your Next Tow Truck Pay For Itself When it comes to purchasing your next tow truck, you have choices. A large cash payment may seem convenient, but tow trucks can be pricey. Prices for a new rollback can cost anywhere between $75,000 - $130,000 – that’s a lot in one purchase. Unlike paying cash, tow truck financing allows you to grow your fleet while conserving your savings. Your business may need savings for: Emergencies: You don't know when the next truck breakdown or business expense will pop up. Payroll: Your employees need to get paid for their hard work. Saying yes to more opportunities: There's always opportunities around new corners... are you ready for them? Benefits of Financing Your Tow Truck There are several advantages to using financing instead of paying cash. Not only can you conserve your liquidity, you’ll also be able to: Qualify for a tax write-off by acquiring equipment. Establish business credit while protecting your personal assets. Lower the upfront cost of your next tow truck. Even if you already own a tow truck, you may need another in the future. Financing a truck allows you to: Expand your towing radius. Add more hauling power to your fleet. Maintain your business while other trucks are being repaired. In general, adding a tow truck to your fleet not only means saying yes to more customers, but you can also accelerate your bottom line. Estimate Your Next Truck’s Low Monthly Payment When you decide to finance your next truck, we understand affordability is important. That’s why we’ve built an Equipment Financing Calculator mobile app to help you know which truck is right for your budget. With Beacon Funding’s mobile app, you can calculate a tow truck financing estimate anywhere. You can even do it over your next tow! See how easy it is to calculate and even apply from one convenient tool. With three powerful calculators at your fingertips, you can: Get a readout of your monthly payment. See how much equipment financing will save you on your next tax return. Determine how much revenue you need to earn to breakeven on your monthly payment. Finance Your Next Tow Truck with Beacon Funding Since 1990, we’ve been helping companies of every size get the tow truck they need to grow their fleet fast and rev in more revenue. We’ve financed over $1 billion in equipment, providing quality customer service to tow truck companies of every size. Yes, even for start-ups. As an A+ rated Better Business Bureau lender, our experienced financing consultants can have you with a tow truck that’s right for you in no time. Apply for tow truck financing today and see why thousands of towing companies chose us to help them keep more cash in their hands, get the truck they need, while earning revenue to growing their dream towing business.

Knowing when to upgrade your tow truck isn’t easy. Let’s be honest: with the uncertainty revolving around today’s economy, you might not know where to begin. Beacon Funding has been providing equipment financing services across the nation since 1990. To help towing and recovery businesses navigate this difficult time, we’ve created a video guide to evaluate purchases post-pandemic. Your Truck Is Your Lifeline Unreliable equipment means losing opportunities and business revenue to your competitors. How do you begin considering what equipment you’ll need, while also navigating how to purchase it? Watch the video to learn how to determine if your business’ capacity to take on new equipment. Budgeting Tools While we may be in a buyer’s market, the decision to acquire new equipment should come down to your own business’ need and ability to take on another truck. Fortunately, there are tools like a breakeven calculator and a financing pre-approval to help you better visualize what you can afford. Breakeven Calculator Using a breakeven calculator will determine how many tows per month, your business needs to perform to afford a monthly truck financing payment. A useful breakeven calculator will also allow you to customize the revenue per tows to customize the results to your business. Analyzing the Results When you use it, the goal shouldn’t just be to breakeven with your equipment. Factor in your other business expenses like fuel, insurance, marketing, repairs, staffing, etc. to get a realistic idea of if a truck fits into your budget. You can try the breakeven calculator for yourself here. Financing Pre-approval A pre-approval is a simple financing plan that allows you to budget and plan for new equipment. By applying for a pre-approval, you can find the terms of a potential financing plan without any commitment. Pre-approvals let you see details of a possible payment plan that a simple quote wouldn’t offer. The best thing is that they are in no way binding. When you apply for an equipment financing pre-approval, you aren’t entering into a legal agreement. They are a commitment-free way to determine how much you can afford to spend on your next equipment purchase. Applying for a pre-approval isn’t a trick to get you locked into a financing agreement; it will help you plan and budget. You can learn more about pre-approvals here. We're Here to Help By considering your business’ demand, staffing needs, and your financial position, you’re well on your way to understanding if now is the right time for you to take advantage of the current buyer’s market. However, you don't have to go it alone. Call 847.897.2499 to talk with a tow truck financing expert and explore the options available to your business.

A certain kind of magic surrounds the weeks that separate fall and winter. This magic comes in the form of crunching leaves underfoot and a slight chill in the air. A sense of complacency is induced, and it becomes hard to imagine a harsh winter lurking around the corner. Eventually the magic brakes, snow and ice begin to cover the ground, and the phone starts ringing. From spin-outs to vehicles deserted in snow storms, you’re suddenly up to your knees in snow and work. Because of fall’s magic complacency you aren’t as prepared as you would like. Year after year this cycle repeats and winter rears its ugly head before you’re ready. It’s time to break the spell and get ready now. Start preparing for the fast approaching winter towing by following these expert tips: Suit Up When you are focusing on equipment and incoming jobs, it’s easy to forget the importance of proper winter clothing. Without insulating jackets and heavy-duty boots, towing becomes even more dangerous. The gear you need depends on location. For colder climates with harsh temperatures and heavy snows, a thick coat or parka is a necessity. Working long hours in the snow is a recipe for hypothermia, but insulating clothes help. It is also important to get waterproof boots with top-notch traction. They’re a life-saver on ice. More temperate climates don’t require as heavy of clothing. Good quality rain jackets to keep you dry and break the wind should be enough. Galoshes and even waterproof bibs come in handy during intense rains or flooding. While thickness and water resistance vary based on location, one thing remains the same; gear needs to be bright and highly visible. ANSI Class III garments are best. They may be a bit pricey, but in poor weather conditions with low visibility they keep you safe. Ready the Trucks Whether you are battling below zero temps or mountains of snow, your truck needs to be ready to fight back against the elements. There are several things you can do to get ready. Here are just a few: Check your tires. Warn and bald tires will not have the traction you need to stay steady on icy roadways. Protect yourself from skids and accidents. Don’t forget to check your spare tires, too. You’ll want them to be ready for action at a moment’s notice. After all, you don’t want to be the one in need of towing. Give your trucks a thorough inspection. Check the engine, coolants, battery, and brakes. If something needs fixing you want to know about it ASAP. Dealing with repairs in the winter cuts into time that could be spent working. Continually monitor the performance of your trucks. At any sign of disrepair, take a look. When it comes to winter towing, it’s better to be safe than sorry. Get the Proper Equipment Winter is an incredibly busy time for the towing industry. Drivers are usually unprepared for winter driving and are in constant need of towing. One of the best steps you can take to prepare for winter is to upgrade equipment or grow your fleet. By doing this, you ensure you have the ability to take as many calls as possible and will always have a truck ready. You never want to have to turn down calls because you don’t have enough trucks. This may sound like a lofty idea, but it isn’t as out of reach as you think. Financing equipment allows you to prep for winter while on a tight budget. Since a lot of profit comes in when snow hits the ground, financing lets you get the equipment you need and pay for it as it generates profit. The benefits of financing don’t stop there. Getting equipment through financing offers distinct advantages. The two most enticing benefits may be the potential tax savings and the ability to maintain cash reserves. The tax savings available through financing equipment save customers thousands and thousands of dollars. This is possible thanks to the Section 179 tax deduction. Through Section 179, you are able to deduct all or part of the price of financed equipment. This results in hefty savings that would not be possible if bought with cash. Maintaining cash reserves is an integral part of running a successful business. It offers stability in times of emergency and allows for fluctuation in cash flow. By purchasing a truck with cash, you eat up your reserves leaving yourself vulnerable. If the equipment doesn’t start generating immense profit immediately, you have no backup cash. With financing, you are often able to put no money down or defer payment. This allows your equipment to start bringing in profit before you start paying for it. In essence, the truck pays for itself. To get started with financing, contact a qualified equipment lender today. You’ll get your equipment in time for the first snow and be ready to hit the icy ground running. In the end, it’s up to you to break fall’s spell and get ready for a profitable winter. Let the dropping temperatures and the growing winds serve as your reminder to contact a qualified equipment leasing company and get your fleet ready to take on anything.

Financing a tow truck in 2022 can create a significant opportunity for towing providers to save on their 2022 income tax return while also adding essential trucks to their fleet. As roadside service providers, the amount of calls you answer depends on the number of tow trucks you have on the road. As labor and insurance costs continue to rise, finding ways to expand your business while conserving cash is crucial. If your business has been waiting to save up for a new truck, here’s how Section 179 can help you expand without breaking the bank. In this article… How Your Towing Business Can Save More on Your 2022 Income Tax Savings How Can Equipment Financing & Section 179 Benefit My Towing Business? Will my Towing Business Qualify for Section 179? What Are The Section 179 Deduction Limits for 2022? Get Started Today with Beacon Funding and a 2022 Section 179 Tax Write-Off How Your Towing Business Can Save More on Your 2022 Income Tax Savings Did you know when you finance a tow truck, you can claim a 2022 Section 179 income tax deduction? A Section 179 tax benefit allows your business to deduct up to 100% of qualifying equipment purchased during 2022, meaning the truck you finance this year can save you thousands on your 2022 income tax return. Want to talk to an expert on how a Section 179 tax benefit works with your tow truck financing? Schedule a meeting now at www.beaconfunding.com/businessgoals. If saving thousands of dollars could make a meaningful impact on your business, now is the time to start planning on using Section 179. By financing your truck, your business can still enjoy the benefits of a larger tax deduction without investing tons of upfront cash. To qualify, your tow truck must be purchased and used for business purposes at least 50% of the time by December 31, 2022. How Can Equipment Financing & Section 179 Benefit My Towing Business? Equipment financing helps break down the cost of tow truck purchases into affordable monthly payments. Rather than paying the entire purchase price upfront, tow truck financing allows you to pay for it over time, making it faster to get the truck you need at an affordable price. Benefits of Tow Truck Financing Conserve Cash: Finance the new or used truck you need for a low monthly payment. Earn As You Finance: Put your truck to use so you can earn revenue for your business. Claim Your Tax Savings: Write off the FULL purchase price of the truck on your 2022 income tax return. Businesses don’t need to make it to the end of their financing term before benefiting from Section 179 tax savings. Even though you are only partially through your repayable, Section 179 allows your business to deduct the full purchase price of eligible equipment in the first year you acquired it. Want to see how much you could save? Download Beacon Funding’s Mobile App on Google Play or on the AppStore! Simply enter in the cost of your equipment in the “Tax Savings Estimate” – you’ll be surprised by how much you can save! Example of How Section 179 Works When your business acquires equipment, tax deductions are realized over its useful life. Section 179 can help your business benefit sooner. For example, let's say you buy a truck with a useful life of 5 years for $50,000. Without Section 179: You would write off a portion of the purchase price annually, spreading your tax benefit in smaller increments over five years. In this example, that would mean a $10,000 deduction each year for five years. While deducting a little at a time can be beneficial, many businesses would prefer to receive their total tax benefit upfront. Unlike other depreciation methods, Section 179 helps to accelerate tax deductions, allowing your business to benefit immediately. With Section 179: You are able to deduct the entire purchase price of the equipment in the tax year you purchase it, significantly reducing the total cost of equipment to you. In this example, that would result in a $50,000 deduction year one. Let’s say you chose to finance that same $50,000 truck for 60 months and have already made six payments before filing your return. At that time, your business has only paid 10% of the total cost of the truck. But with Section 179 you still get to claim 100% of the purchase price as your deduction. Sounds pretty good, doesn’t it? Will My Towing Business Qualify for Section 179? Businesses that purchase eligible new or used equipment during the tax year may qualify for a Section 179 tax deduction. Every year, the U.S. government sets the deduction limit and spending cap for equipment. This is important to know if you’re looking to acquire a lot of equipment in the same year. Once this limit has been reached, the deduction decreases on a dollar-for-dollar basis. You can also take advantage of bonus depreciation for certain types of equipment above the Section 179 threshold, which helps reduce your tax burden further. What are the Section 179 deduction limits for 2022? Section 179 Depreciation for 2022 is limited to $1,080,000 (adjusted for inflation each year). If you purchased equipment over this amount, you might qualify for Bonus Depreciation. Bonus Depreciation details are complex, so please consult your tax advisor! Equipment must be put into service by December 31, 2022, to qualify. Combining the use of equipment financing and Section 179 tax benefits is a powerful “cash in your pocket” tool. What is the deadline to qualify for a 2022 Section 179 deduction? Make sure your equipment is in operation and used for business purposes more than 50% of the time by December 31st, 2022. If the equipment you are looking at takes a few months to deliver, plan ahead to make sure it is available before the deadline. Does used equipment qualify for the deduction? New and used equipment acquired for business purposes may qualify for a deduction. Everything from heavy-duty equipment, business vehicles, office furniture, computers, and off-the-shelf software may be eligible. As with any tax-related questions, consult your CPA before purchasing to determine if the equipment you want qualifies for the Section 179 tax deduction. Get Started Today with Beacon Funding and a 2022 Section 179 Tax Write-Off When you combine simple, easy, and competitive equipment financing with Section 179 tax benefits, it is easier to fit new or used equipment into your budget. Remember to start the process sooner than later, especially before the year-end rush. Don’t risk the equipment you want not being available or delivered on time. Here’s How To Get Started A trusted equipment financing provider like Beacon Funding can help you acquire your tow truck with financing so you can invest in your business today. Here’s what you can do: Finance a new or used truck in 2022 at www.beaconfunding.com/apply Make sure your truck is in operation and used for business purposes before December 31st, 2022. Extra tip: If the equipment you are looking at takes a few months to deliver, plan ahead to make sure it is available before the deadline. To claim a Section 179 write-off for Depreciation and Amortization, fill out form 4562 with your 2022 income tax return. Remember, you want to consult your professional tax advisor. The sooner you do, the more likely you can use the opportunity to keep cash in your business.

Tow shows are great places to discover what’s going on in the tow truck industry. If you’re on the fence about whether you should attend or not, there are many reasons you should schedule a trip and attend. Why Attend Tow Shows? Whether you’re new to the tow truck industry or a veteran tower, attending a tow show offers opportunities that can provide your business an edge in many ways. How? Networking Be part of your community. Get the full benefit of your attendance by connecting with professionals who can support your towing business. Motor Clubs: Whether you want to raise visibility for your business or see their offered rates, talking with a motor club may lead you down a path towards increasing call volume. You’ll have a chance to meet the major players at a tow show. Insurance Agents: Every truck needs insurance – finding a better rate can save you money, but don’t do it at the cost of your coverage. Tow shows are great opportunities to talk to agents about clean driving record discounts and other programs to lower your premium. Marketing Companies: Make sure your business is easy to discover online. Talk to marketers to see how they can help with digital advertising, building a website, or even design business cards. Tow Truck Manufactures: Talk directly with people who make the trucks you use each day. Talk to them about your needs to help compare makes and models. Tow Truck Financing Providers: A strong relationship with a financing company makes it quick and easy to afford the truck you need. It’s important to ask them if your business qualifies, the turnaround time for an approval, and what to expect after you finance. Go ahead – make friends with other towers who aren’t your direct competitors. You never know, you may help one another somewhere down the road. Learn new ways to boost your business Push your knowledge to the test. No matter if you have years of experience or just starting, there’s always something new to learn. By attending a tow show, you can participate in instructional training that demonstrates proper equipment use and acceptable industry standards. You can also position yourself to learn how to service electric vehicles on the road today and tomorrow. Some courses even include certifications. There are also presentations that show you how to be a more successful tow truck business. Some include: How to correctly bill the value of recovery work. How to write recovery invoices. How to collect payment from insurance companies. How to get found online and get more cash calls. How to recruit the best trained and top-quality employees to help increase profits. Those are only a few examples of the many awesome classes you can take from industry leaders to help rev up your business. That way, you’re on the road to becoming the best tower you can be. Scoping out equipment Get what you need. Of course, appreciating the industry’s latest and greatest tow trucks is worth it alone for the experience. But don’t forget other equipment too. Whether it’s chains, straps, safety gear, lockout tools, or anything else, you can find it – or someone who does – at a tow show. Talk to the vendors and see what they have to offer. It might be something you’re not doing or considering but might be an easy way to expand your business. Equipment Lenders at Tow Shows See a truck you need at the tow show, but lack the funds? There are ways to make it yours. Find financing that supports your goals. Want facetime with financing experts to talk about tow trucks? There’s plenty of equipment financing lenders that specialize in helping towers get equipment to help make the roads a safer place – that’s exactly what Beacon Funding does. As experts in tow truck financing, Beacon’s Financing Consultants approve over 70% of applications received. This year Beacon is traveling across the country to meet, talk with, and help towers get needed equipment with world-class financing. Whether you’re looking for a simple truck or a heavy-duty vehicle, you deserve the best financing that puts you in the driver’s seat towards success. Discounts and Specials for Roadside Providers: Tradeshows are a great place to get exclusive offers. Beacon Funding runs trade-show-only financing specials. That means attending could help you get a great deal on financing a future truck. Get Financing Questions Answered at an Upcoming Tow Show Have questions about financing a truck you see at a show? Get them answered in person. Talk face-to-face with a truck financing specialist. A tow show is a great place to meet one of Beacon Funding’s Financing Consultants and talk about how they can support your goals. The Bottom Line Yes, not attending a tow show means you don’t have to pay for traveling, food, and other expenses. But the opportunities your business could come across and the people you meet may outweigh those costs. It relies on you to use whatever you can get out of the experience. Before deciding whether to attend a tow show, spend time and put considerable thought into weighing the pros and cons. You never know – you could miss out on a few chances that make a difference in building your dream tow truck company. You won’t know until you try.

Why should you consider equipment financing for your tow truck business? 1. Equipment Financing Helps You Get Equipment Sooner First and foremost, you get the equipment sooner. You may not have all the cash on hand to purchase a tow truck outright, but if you finance the equipment instead the lender can help you afford it today. Equipment financing allows you to get the equipment in production generating revenue faster than if you waited around to have all that purchasing power on hand. There’s also opportunity cost with waiting. If you are hesitant about financing, ask yourself if your business is comfortable with: Lost contracts Outsourcing business you could do yourself Growing at a slower rate Ready to Get Your Tow Truck Sooner? Talk to a Financing Consultant About Your Needs Since 1990, Beacon Funding has helped companies like yours get equipment in their hands faster. They’re ready to help you achieve success by finding the right financing option for your unique situation. To discover what financing options are available to you, schedule a quick talk with a financing consultant today. 2. Conserve Your Cash for When You Need It A dollar today is worth more than a dollar tomorrow. Simply put, you cannot finance things like marketing costs, but you can get an affordable monthly payment on a piece of equipment. Using all the cash you have on hand to purchase a piece of equipment can make operating expenses really tight. No business wants to be equipment rich and cash poor. With equipment financing, you can conserve your cash for a rainy day, payroll, operating expenses, etc. 3. Finance New and Used Equipment Equipment financing isn’t only for new equipment. A quality equipment financing lender will offer financing both new and used equipment. This opens your business up to more options to find the right equipment for your unique situation. With this flexibility, make sure to evaluate: Price point: Which equipment will fit your monthly budget? Reliability: Has the equipment been inspected? Convenience: Is the equipment currently available, or does it have production delays? If you need help evaluating your equipment options, Beacon Funding has over 31 years of expertise. Talk to your financing consultant about your options and if your equipment will meet your goals. 4. Wide Credit Window A wide credit window is another great reason to consider equipment financing. On one end of the spectrum, Beacon Funding has applicants who have been in business for years with well-established personal and business credit history. On the other end, we have also approved applicants with more challenged credit and even start-ups. A best-in-class financing partner will have options for both start-ups, established businesses, and everyone in-between. Beacon Funding's focus on wide credit windows and niche equipment means we're able to give an approval to 7/10 applicants. 5. Fixed Monthly Payments Knowing your fixed monthly expenses is powerful for a business. Knowing your operating expenses will help you budget accordingly and grow your shop. Talk to Us About Your Established Business’s Needs If you’re still wondering how equipment financing can boost your business’s production, talking with a financing consultant is a great way to learn more! Schedule a quick call. Beacon Funding’s financing consultants are always ready to answer your toughest questions – you’ll be surprised how knowledgeable they are.

You may notice it’s harder to buy a new truck nowadays. Due to the global supply-chain disruption of computer chips, medium and heavy auto manufacturers aren’t receiving critical parts to produce enough trucks. This has made it difficult to find a fair-priced truck in today’s market. This article breaks down the challenges many businesses are facing due to the computer chip shortage, why it’s happening, and how equipment financing helps you act fast on available equipment. Table of Contents The Problem With The Computer Chip Shortages Long-Lasting Impact on the Medium and Heavy Commercial Vehicle Sector The Effects on USA-based Production Plants & Truck Brands How Dealerships Are Responding Get Your Next Truck Faster with Beacon Funding’s Pre-Approval Program The Problem With The Computer Chip Shortage The sparse supply of semiconductor computer chips has stalled American auto assembly lines. During the initial wave of the 2020 pandemic, auto manufacturers canceled large orders of semiconductors when they were forced to shut down. Now plants are ordering them again. At the same time, companies across the board are hoarding them – causing a ripple effect throughout the automotive industry. The timeline for customer orders for a truck used to take weeks. Because of supply chain delays, they’re now taking months. Long-Term Impact on the Medium and Heavy Commercial Vehicle Sector There is speculation that prolonged effects of the computer chip paucity may extend into 2022, according to IHS Market. Others predict a similar timeline: According to a press release by technology research firm Gartner, the long-term ripple effects of the global semiconductor won’t return to normal until the second quarter of 2022. “We are looking at couple of years… before we get enough incremental capacity online to alleviate all aspects of the chip shortage,” said IBM President Jim Whitehurst on BBC World Business News. The Effects on USA-based Production Plants & Truck Brands Peterbilt and Kenworth In a statement from PACCAR, the largest manufacturer of medium- and heavy-duty trucks in the world announced in 2021 that their third quarter truck deliveries was short by approximately 7,000 vehicles. Production is likely to remain slow in the fourth quarter. 350 workers at the Kenworth manufacturing plant in Chillicothe, Ohio, were laid off in August. While demand for their trucks remains strong, they can’t complete enough trucks without the critical chips. Ford’s Medium Duty Trucks According to the Associated Press, sales of Ford’s F-Series trucks fell nearly 23% in August. Ford announced it slowed production at its Kanas City Assembly Plant for a couple weeks. Shifts were also cut at truck plants in Dearborn, Michigan and Louisville, Kentucky. General Motors Earlier this year, General Motors canceled shifts at four of its biggest U.S. factories in Texas after a severe winter storm created dangerous driving conditions for workers. This contributed to the plant’s delay of computer part deliveries even more. How Dealerships Are Responding As dealerships see less trucks in their lots, customers are facing higher asking prices. Truck dealers who were able to sell a good volume of trucks before disruptions are now being limited by the manufacturers. Because of the limited supply, there are no “good deals.” Instead, purchasing prices are being inflated. Business owners who are fortunate to have enough cash to buy a truck have little-to-zero negotiating power. Even if buyers wait a day, there’s a line of people willing to pay the inflated price because there aren’t other options. We don’t like inflated prices any more than anyone else. Our truck experts understand that’s what the market is offering now. While other lenders might turn you away, saying “the truck is overpriced,” Beacon’s credit managers understand that’s where everyone is right now. Get Your Next Truck Faster with Beacon Funding’s Pre-Approval Program Equipment financing can put you in the fast lane towards getting the truck you need. In today’s tough market, Beacon Funding understands that trucks are in high demand. With equipment financing pre-approvals within 24 hours, we can help you get your hands on your next truck before it’s gone. Get pre-approved for your next truck today – there is no commitment, no risk, and you could be approved within 48 hours. We’ll be glad to talk with you about how we can help.

Let’s face it – starting a new towing business isn’t easy. In the first few years, you’re up against overwhelming odds. It’s even harder to decide on which tow truck will bring a positive return on your investment. Finding the right one at the right price is a must if you want to haul home more profits and keep your costs low. Get a tow truck in your fleet fast with these figures... Prices for Buying a New Rollback Tow Truck Prices for Buying a New Wrecker How to Keep Your Cash and Let Your Next Tow Truck Pay For Itself Estimate Your Next Truck's Low Monthly Payment Find a Used Tow Truck for Sale How Much Does A Reliable Tow Truck Cost to Buy? Getting your hands on that new tow truck is a sweet milestone for growing your fleet. If you’ve got the cash to spend, what can you expect to pay upfront? Prices For A New Rollback Tow Truck Depending on the brand and model, a new rollback tow truck can cost anywhere between $75,000 - $130,000. Financing your next tow truck can help break down that cost to help you acquire the same great truck sooner. Calculate a low monthly payment for a new rollback here. Prices For A New Wrecker Whether you need a boom, wheel-lift, forks, or light bars, these trucks can range in price anywhere between $65,000 to $115,000. But if you need to haul extremely large vehicles, a heavy wrecker could be as expensive as $750,000. If your business is like most, keeping more cash in your business is key! Calculate a low monthly payment for a new wrecker here. How to Keep Your Cash and Let Your Next Tow Truck Pay For Itself Even if you have enough cash, there is an easier way to get your hands on your truck without having to spend it on one large expense. Growing your business is harder without cash on hand. After all, the #1 reason why businesses fail is lack of cash, so your decision on how to buy your truck shouldn’t be taken lightly. The solution? Spreading out your expensive truck purchase into manageable monthly payments with financing. Unlike paying with cash, financing lets you add another truck to your fleet while still conserving your savings. Your business may need savings for: Payroll Emergencies Saying yes to more opportunities Benefits of Financing Your Tow Truck Using tow truck financing to acquire equipment comes with many advantages. A tow truck added today means saying yes to more customer calls, bringing in more revenue, and speeding up your business’s growth tomorrow. Not only can you conserve your cash, you’ll also be able to: Get a significant tax write-off for acquiring a vehicle. Establish business credit while protecting your personal assets. Lower the upfront costs of your start-up. Even if you already own a truck, you will need to purchase another one eventually. Financing a truck allows you to: Expand your towing radius Add more hauling power to your fleet Keep your business running while other trucks get repaired Easily Estimate Your Next Truck's Low Monthly Payment Financial calculators make it easy to discover how affordable getting your next truck can be. Simply enter the cost of the truck you want to buy, press "Calculate" -- and done! Immediately see your truck's monthly financing payment based on the terms you’ve selected. You can do this now on the fly with your phone by downloading Beacon Funding's mobile app. Streamline your business growth today. Looking to Save On Equipment Costs? Try Opting For a Used Truck Leasing a tow truck can be even more affordable if a used truck makes sense for you. Your business can still find a truck to handle your toughest jobs while saving on its cost. Leasing a used tow truck may allow your business to see profits sooner if you are willing to do a little searching. Resources to Help You Find a Used Tow Truck for Sale: Equip-Used.com Used tow trucks are becoming harder to find, but at Equip-Used.com’s commercial truck section you could buy your next used tow truck at a reasonable price. If you want to see a high return on your investment, this site is ready is to help you conquer the road by getting one for immediate use. They update their inventory on a weekly basis and offer a collection of used commercial truck equipment, including: Flatbeds Wreckers Box Trucks Trailers Car Haulers Septic Trucks Cranes Be sure to check back with their inventory on a weekly basis if no commercial trucks are available at the moment. Used Equipment Network Tired of wasting time with online listings and classified? With Beacon Funding’s Used Equipment Network, you have access to thousands of commercial equipment providers just a phone call away. In this large network, you can immediately leverage thousands of connections already in the towing industry to quickly find the right used truck for you, including: Manufacturers Dealerships Equipment Vendors With Beacon Funding communicating with over 1,500 businesses a day, searching for your dream tow truck is much easier with a financing consultant helping you get results. Finance Your Next Tow Truck with Beacon Funding Growing a young towing business isn’t for the faint of heart. Fortunately, you have options to make it easier. Since 1990, we’ve been helping companies of every size get the tow truck they need to grow their fleet fast and rev in more revenue. We’ve financed over $1 billion in equipment, providing quality customer service to tow truck companies of every size. Yes, even for start-ups. As an A+ rated Better Business Bureau lender, our experienced financing consultants can have you with a tow truck that’s right for you in no time. Apply with us today and see why thousands of towing companies chose us to help them keep more cash in their hands, get the truck they need, while earning revenue to growing their dream towing business.

Are you considering a truck purchase but not sure if you’re ready to expand or update your fleet? If so, Beacon’s tow truck financing options are the way to go. We work with tow providers to help find a program that helps them reach their goals while staying within their budget. Get answers to the following questions... When Can I Afford Another Truck? How Can I Say Yes to More Calls? I Have Too Many Truck Repair Bills… Now What? How Do I Expand My Call Coverage Area? How Do I Get a Truck as a Start-Up? Does Working with Allstate Improve My Approval Chances? I'm Starting a Recovery Business - What Mistakes Should I Avoid? Can You Finance a Used Tow Truck? Can I Finance a Truck Being Sold by a Friend? Where Can I Find My Next Truck? See some of our frequently asked questions below and/or reach out to one of our financing consultants to get your questions answered too. 1. When Can I Afford Another Truck? Truck shopping should start with a payment estimate. Often, roadside service providers don't know if they can afford an additional truck. If you want to take on more service calls, tow truck financing can help you expand as early as today! Start by getting a low monthly payment estimate. Visit our Finance Calculator or download the Equipment Leasing Calculator at the App store. It only takes a few minutes to realize how affordable expansion really is. 2. How Can I Say Yes to More Calls? More calls means more business, but also more trucks. Are you looking to service more vehicles? If so, make sure you have the fleet necessary to serve your coverage area. Truck financing can be the quickest and easiest way to expand a truck fleet. Give Beacon Funding a call and we will get your additional truck(s) approved and funded in no time. 3. I Have Too Many Truck Repair Bills… Now What? It may be time to finance a new truck. Equipment issues can cause you to reject calls or have unacceptable ETA's. When this happens, remember obtaining a new replacement truck is easier than you may think. From application to funding, Beacon Funding's entire truck financing process can happen in days. 4. How Do I Expand My Call Coverage Area? Add trucks to your fleet. Expanding your roadside service territory requires enough trucks to cover the larger area. Beacon Funding can be a crucial resource to help you get more trucks quickly. Get your financing in as soon as 24 hours. 5. How Do I Get a Truck as a Start-Up? Work with a company with a history of approving start-ups. For years, Beacon Funding has specialized in providing start-up businesses the capital they need to acquire their initial trucks. Let us help you build your business credit today to expand your business faster in the future. 6. Does Working with Allstate Improve My Approval Chances? Leverage your current Allstate activity. Did you know service providers who conduct the most calls probably have a better chance of being approved for truck financing? Beacon considers it a significant credit enhancement when a service provider performs a meaningful amount of dispatch activity with Allstate when evaluating a truck financing application. The longer you've worked with Allstate, the more calls you take, the better chance they have at being approved for financing on their next truck. 7. I'm Starting a Recovery Business - What Mistakes Should I Avoid? Keep your cash and finance a new truck. Small businesses like to cash in their bank account for running their business, fixing their trucks, paying for insurance, and meeting payroll. Not leveraging financing can hold a small business back from expanding faster. Beacon's equipment financing programs allow providers to keep their cash AND get their next truck. Beacon's no money down truck financing programs can be a brilliant way for a service provider to grow their business. 8. Can You Finance a Used Tow Truck? Yes, Beacon Funding finances used equipment. If you don't want to spend too much on a new truck, a used truck could offer a quality alternative at a lower price. One of Beacon Funding's strengths is its ability to help business owners acquire used trucks. We offer multiple programs with no age restrictions and mileage flexibility. Ask us about financing your next used truck! 9. Can I Finance a Truck Being Sold by a Friend? Yes, Beacon Funding can help with a third-party sale too. The towing industry is a close-knit community. Know someone selling a truck you want to buy? Beacon can help if you're looking to acquire your next truck from a friend or local tower too. Fill out our online application and Beacon Funding can help you with truck financing. 10. Where Can I Find My Next Truck? Call Beacon Funding to help your search. We work with all the industry's top tow truck dealerships. If you’re looking for a truck, talk to one of our financing experts. They are constantly working with a network of thousands of towing businesses across the country. Ask them how they can assist you with buying and selling your trucks. No matter how simple or complex your situation is, you can depend on Beacon Funding to get the tow truck funding you need. We believe in small businesses and are committed to making quality equipment more affordable for the people who run them.

Struggling to attract new customers? A digital marketing plan can help. Whether your company depends on a tow truck, septic pumper truck, or boom truck to operate, your business grows by getting more people to know about your services. A successful marketing plan can help achieve your goals of getting more calls and commercial contracts. Here are three tips to help you create a digital marketing plan. 1. Know Your Ideal Customer Every successful marketing plan begins by knowing your target audience. To properly market your company, you must have the ability to gain revenue from a wide variety of sources. The more you understand the demographics that drive your sales, the easier it will be to focus your marketing efforts. Invest time learning about what your potential customers need. Start by determining if your customers are more B2B or B2C. B2B: You sell your services to other businesses. Aim your efforts towards professionals who make purchasing decisions on behalf of their organization. LinkedIn Navigator is a great tool to find decision-makers. Before you put money into digital advertising, remember that you want to target businesses that will need your services and can afford them. Consider location, business revenue, industry, and other factors to refine your search. For example, a towing company may discover an opportunity to start a B2B relationship by providing private party impounds. Even if there are other towing companies already in the area, reaching out to nearby apartment offices or restaurants may lead to untapped opportunities your competitors aren’t aware of. For a boom truck company, you might see the highest earning potential from municipal contracts. Target professionals in the construction, tree trimming, landscaping, or cable/internet service industries. B2C: You sell your services directly to consumers. Aim your efforts at marketing to consumers directly. Social media, Pay Per Click ads, and even digital display ads have been proven to be a low-cost way to get in front of more individuals interested in your services. For example, a septic company may learn some people aren’t aware of septic services. You could also find new customers by sending direct mail marketing brochures to educate people about preventative maintenance in your local area. 2. Lean into Local Search Engine Optimization (SEO) Search engine optimization (SEO) isn't as hard to start as you may think. It's a digital marketing strategy that helps your business become easier to find when somebody searches for your offered services on Google. The more visible your website is, the more likely you’ll receive customer calls. Because your business may be limited to how far your truck can travel, it’s possible to appeal to more customers in your local area. For customers who need help with roadside assistance, they are going to want the nearest tow truck. For customers who need help with an overflowed septic system, they are going to want a nearby septic service. Here’s an easy way to start that takes little professional expertise. Claim Your Google My Business Profile When people search for local businesses, they most likely Googled it using their smartphone. If someone finds your company on Google Maps with their phone, they’re likely a potential customer looking for your service now. In 2019, 88% of consumer local business searches on a mobile device either call or visit the business within 24 hours. To start showing up on Google Maps, start by signing up for a free Google Business Profile. Once your business is verified, your business listing will display on Google Maps for everyone to see your service area. If you have a budget for online advertising, you can use Google Ads to target nearby customers in your surrounding area. Strengthen Your Profile with Customer Reviews In today’s digital world, online reviews matter for attracting new clientele. In 2021, 76% of consumers trusted online reviews as much as they trust personal recommendations. Once your Google My Business profile is verified, you can start collecting Google reviews. A great time to encourage your customers to publish reviews is right after you’ve completed a service call. Simply send them a follow-up email with the review link. 3. Make Sure You Have a Website and It’s Mobile Responsive If you don’t have a website, stop reading right now and start finding a web designer. Think of your website as your digital storefront. A knowledgeable web designer can help boost your online presence so you can start letting customers come to you. As people search for your service on their phones, it’s important that your website is mobile responsive. This means the design is optimized to operate on a small screen. If your site is slow to load, the text is too big or too small, or the images don’t fit on the screen, you can frustrate users... and lose their business. By making your website design tailored to their device, you reduce the number of customers who abandon your website. Get Help From An Expert If all of this sounds overwhelming, don’t worry. A great way to get started is to start searching online for an expert who can help your small business build a marketing plan today. Whether your company delivers services via a tow truck, boom truck, or septic pumper truck, a marketing professional can build a strategy for you. Set a Budget Budgeting for marketing every month can ensure that your business can keep growing in the future. Chris Beecher, The Whole Brain Group, explains the importance of setting a budget that gets results. “If you plan to grow by 20%, but only want to invest enough in marketing to get new business cards for everyone in your company, you’re probably going to be disappointed with the results of your investment!” He suggests setting a budget anywhere from 3%-5% of your top-line revenue. Free Up Capital with a Sale-Leaseback If 3-5% of your revenue sounds like a stretch, there are equipment financing programs designed to get your business extra cash. A sale-leaseback is a great financing option that pulls equity out of a truck you already own. By entering a lease agreement with Beacon Funding, you receive cash (which you can use for a variety of business needs), while making small monthly payments over an agreed period. At the end of the term, Beacon Funding releases the lien and you once again own the truck free and clear as before. And yes – you still retain possession of your truck so you can still use it for generating revenue!

Northbrook, IL., Feb 3, 2021 — Calculating an affordable equipment payment just got easier with Beacon Funding’s new and improved mobile app. This week, Beacon released a brand new version of their 3-in-1 Equipment Financing Calculator App for both iPhone and Android mobile users. Now available in both the App Store and Google Play, the Equipment Financing Calculator App helps businesses take the guesswork out of how much equipment they can afford. This powerful app provides equipment buyers and sellers with three unique equipment financing calculators: monthly payment, income tax savings, and breakeven estimate. “Equipment buyers typically have one common question when seeking financing: ‘What’s my payment?’ We designed this app to help them answer that question,” said Toby McDonough, President. “Busy business owners and equipment sellers can now quickly and effectively estimate equipment financing payments while on the go.” With Beacon’s app, mobile users can tap to easily navigate between the three different calculator types. Monthly Payment Estimate: Users can calculate a low monthly payment for their equipment financing and compare it to a variety of term lengths (36, 48, 60, 72, or 84 months). Tax Savings Estimate: Users can calculate how much equipment financing can potentially save them on their next income tax return by estimating tax savings related to their equipment purchase. Breakeven Estimate: Users can calculate how much monthly activity their business needs to generate to cover their monthly payment. By comparing payments to anticipated income, a business owner can make sure they are not spending too much on their new equipment. From within the app, users can easily share any calculation results with their team via email or text message. The Equipment Financing Calculator App also makes it easy to apply on the go, allowing users to get financing without having to take time away from running their business. To learn more about Beacon Funding’s mobile app, visit www.beaconfunding.com/about-us/mobile-app. The post Beacon Funding Releases 3-in-1 Equipment Financing Calculator to iOS and Android appeared first on Beacon Funding. View the full article on Beacon Fundings Blog

As a tow truck service provider, you’re an expert in helping people in dangerous roadside breakdowns. Meanwhile, keeping yourself safe working on the road with heavy-duty equipment isn’t for the faint of heart. Your equipment is your lifeline — not having the correct towing equipment at the right time means losing opportunities and business revenue to your competitors — and is the difference between success and failure. How do you even begin considering what equipment you’ll need, let alone how to even purchase it? Whether you’re acquiring your first tow truck or adding another to the fleet, here are some questions to consider for fulfilling your towing needs: What Type of Equipment Do I Need Now? Providing reputable towing service means knowing the job’s requirements: What works for towing a vehicle in one scenario may not work in another. Having the correct truck for the type of vehicle will make you more efficient and getting the job done correctly. For example, a large Freightliner semi-truck requires more underlift than a small 2-door Honda Civic. If you specialize in moving larger vehicles like semis, buses, or agricultural equipment, then an integrated tow truck might be a good investment to get you started. Another factor is your company’s surroundings: Are you located in an open rural area or in a crowded city? Moving a disabled vehicle from a field ditch is a different scenario than moving an illegally parked car in a downtown parking garage where a large boom lift won’t work. Instead, a light-duty tow truck will just do. What Should I Know About High-Tech Vehicles? Every year as new automotive models leave manufacturers, hi-tech vehicles are becoming the norm. A Mordor Intelligence January 2020 forecast reveals hybrid vehicles with battery technology are expecting high global growth rates by 2025. For tow truck service providers this means learning about high-tech vehicle requirements, how to transport them correctly, and what tow truck equipment is required for the job. For example, Tesla’s roadside assistance manual specifies only a flatbed trailer should be used to avoid damaging the vehicle. Knowing the kind of tow truck equipment you’ll need will make you a better candidate for securing finance… and your customers will thank you, too! What Purchasing Options Are Available? While securing a loan presents different problems for getting the equipment you need, it’s simpler than you might think. Take into account whether or not you should purchase new or used tow truck equipment. Are you thinking about buying a tow truck the traditional way with cash? That might eat up your precious savings and leave you without enough liquidity for future expenses. You might want to consider spreading out the cost of your tow truck with an equipment financing agreement or a lease-to-own program. If you think poor or no credit history automatically denies your equipment financing, reputable lenders are willing to work and negotiate with tow truck service providers and help them get their needed equipment. Whether you’re just starting your tow truck company or an experienced enterprise, applying with a reputable finance provider for your equipment is the first step. Earn When You Finance with Beacon Funding With Beacon’s experience in tow truck financing, your business can get the funds needed to afford more trucks, take on more calls, reduce ETA, improve service, and bring in more revenue. If you are an Allstate Roadside service provider, you may also be eligible to receive the following perks with every truck you finance: $300 VISA gift card (when financing $50,000+) $200 VISA gift card (when financing $25,000-$49,999) $100 VISA gift card (when financing $25,000 or less) Beacon’s tow truck financing expertise allows us to approve over 70% of applications received. Visit our website to learn more about the advantages for Allstate Roadside providers. Apply For Tow Truck Financing That’s Quick, Easy, and Convenient At Beacon Funding, our goal is to help tow truck providers keep the roads safe. That’s why we go the extra mile to make applying for equipment financing quick and fast. Applying has no cost or commitment and only takes a couple of minutes to complete. As an A+ rated Better Business Bureau lender, our experienced financing consultants can have you with a tow truck that’s right for you in no time. Apply with us today and see how we can help you keep cash in your bank and earn revenue while you achieve equipment ownership. The post Tow Truck Equipment for 2021 and Beyond appeared first on Beacon Funding. View the full article on Beacon Fundings Blog

As everyone looks forward to 2021, it’s a great time to start looking for new ways to help your small business grow. The benefits of adding new equipment are endless. It gives you the ability to become more efficient and increase your output, and even expand to new markets. As you gear up for the New Year and new equipment, we put together a quick guide to help with your business research. Here the top seven things you should know before purchasing equipment with equipment financing: 1. Know Your Options Did you know that the #1 reason why businesses fail is that they don’t have enough cash in the bank? Before purchasing new equipment, think about the impact it will have on your balance sheet. Instead of eating up your savings all at once, what if you could spread out the cost of the equipment over time? Equipment financing breaks down the cost of your equipment into affordable monthly payments. Not only does equipment financing keep your business liquid, but it also allows you to use your hard-earned cash for uncertain times or fast opportunities. Equipment financing has its advantages: Not only will your equipment produce revenue while you pay for it, but it also helps keep your cash in your possession for investing or paying for business expenses. Some ways to spend your cash include: Online marketingDigital advertisingAttending industry tradeshowsUnexpected equipment repairsPayroll2. Do your due diligence When you start researching different lenders, you want to find a financing partner that knows your industry. A lender with equipment expertise will better understand the importance new equipment will make to your business. Not only will your business have a better chance of being approved, but they’ll also be able to offer flexible financing programs that fit your industry. As you evaluate lenders, you want to make sure your business has the best chance of approval in the timeframe you need it. Questions you can ask: How long does it take to get approved?What are their qualifying criteria?What are the steps of the financing process?Do they have experience financing equipment?3. Find A Reputable Lender Find a reputable equipment financing company with your business goals in mind and start a relationship with one that works tirelessly to help you get the equipment financing you need. After researching lenders and choosing one that fits your goals, look at their reputation. How long have they been in business? How much equipment have they financed? What is their reputation with the Better Business Bureau? As a trusted lender, Beacon Funding has funded over one billion dollars of equipment for over 30 years. And with an A+ Rating on Better Business Bureau, Beacon has helped tens of thousands of businesses across the United States get the equipment they need to grow. Does the lender you’re looking at have good customer reviews? Customer testimonials give insight into what the experience was really like working with that lender. Beacon Funding even has in-depth video testimonials to help you evaluate their service. 4. Get Familiar with How the Equipment Financing Process Works Getting the funds to afford expensive equipment isn’t always easy, but that doesn’t mean your application process has to be difficult. To understand how the equipment financing process works, look at how reputable lenders run their application process. With Beacon Funding, we make your equipment financing process convenient for any busy business owner with six simple steps. Here’s how Beacon’s Equipment Financing Process Works: Step 1: You submit a quick and easy application Step 2: You discuss your business goals with your dedicated consultant Step 3: Beacon submits your credit package for approval Step 4: You are sent an approval letter Step 5: You sign the documentation easily through DocuSign Step 6: You accept and start using your equipment 5. Know the Common Criteria Considered and How to Qualify When you apply for equipment financing, a lender will ask questions and check if your business is eligible for a loan. Many traditional lenders have strict criteria to determine whether to approve your application, like having a perfect credit score. But because of Beacon’s specialty in equipment financing, we can get creative and consider a wider range of criteria. Here are some of the criteria Beacon Funding looks at: Personal Pay HistoryBusiness Pay HistoryEquipment TypeTime-in-BusinessCash Flow6. Establish Business Credit Sooner Than Later If you want to grow your small business, business credit is vital. While some business owners don’t see the benefit of building their business credit until it’s too late, the fact of the matter is businesses can’t expect to grow without access to bank loans or outside financing. Here are some benefits to establishing business credit: As your small business grows, you’re going to need more funds and better cost control.As your small business gets more work, reliable customers, and bigger orders, you will need more funds to get more assets.As your business builds credit over time, its reputation with lenders becomes stronger and more secure. This puts your company in a better position to acquire the equipment it needs to bring in more revenue. 7. Consider Leveraging Tax Benefits of Equipment Financing Did you know that businesses that purchase eligible new or used equipment may qualify for tax savings? If you’re thinking about acquiring new equipment, consider the benefits of a Section 179 tax deduction when you purchase your equipment. Section 179 allows businesses who pay cash, finance, or lease equipment to deduct all or part of the purchase price of qualifying equipment during the tax year. Unlike other depreciation methods, Section 179 helps to accelerate tax deductions and allows your business to benefit immediately. This incentive encourages small business owners to buy equipment and invest in themselves. Here’s how your business can use Section 179: Let Beacon Help You Start Your Journey Towards Equipment Ownership Everyone has to start somewhere. Acquiring new equipment isn’t always easy, but Beacon Funding has your goals in mind. For over 30 years, Beacon Funding’s passion has helped thousands of businesses nationwide do their jobs by getting them the equipment they need. Contact us, and you’ll see how we put your business goals first. With our positive, premium customer service, the Beacon family believes in helping the customer first. If you’re looking to purchase equipment to grow your small business, tell us about your equipment needs and let us help you start down your path towards equipment ownership. The post Top 7 Things To Know Before Acquiring New Equipment appeared first on Beacon Funding. View the full article on Beacon Fundings Blog

If you’ve used a personal credit card you’ve already started establishing personal credit. It’s a great tool for getting extra purchasing power for the things you need. However, personal credit alone can only take your business so far. As a small business owner, it’s important to understand and distinguish between personal and business credit. Too often, Beacon Funding sees business owners rely solely on personal credit to finance equipment. Very few small businesses can grow and expand their operations consistently over time without obtaining some form of financing. Establishing business credit is key if your business hopes to tap into the many financing options available to them. Let’s take a look at how establishing business credit can set your business up for long-term success. What is Business Credit? Like personal credit, lenders want to see how reliable a business pays their financial obligations before giving them a loan. Lenders typically look at business credit to determine if a company is worthy of lending money. The better the business credit, the less risk for the lender, and the more likely a business can obtain financing. Typically, a business’s credit is evaluated by reviewing a variety of factors. Here are some components that make up what lenders typically look for: Time in Business: Time in business is a measure of how long a company has been operating. It is important because it’s a useful measure of how successful a business has been. All else equal, lenders prefer to work with businesses that have demonstrated a long history of success. If a company has operated successfully for 20 years, it is logical for a lender to assume they will be successful for five more years while their loan is being repaid. Corporate Pay History: Corporate pay history is a measure of how well a business has repaid past obligations. It is important because typically businesses that have paid timely in the past will continue to pay timely in the future. All else equal, lenders prefer to work with businesses that have a long, successful history of repaying their loans on time. Lack of Derogatory History: Historical derogatory events such as corporate liens, judgement, suites, collection and bankruptcies make lenders nervous. Most lenders assess more risk to a business that has had financial problems in the past. If there are problems, lenders may fear that these issues may persist during the repayment of their loan that may put their debt at risk. All else equal, lenders prefer to work with businesses that do not have a derogatory-free past.Ownership Credit: The personal credit quality of a business’s owner(s) often plays into the strength of business credit. Many lenders assess more risk to a business whose owner(s) fail to manage their personal credit well. Lenders often assume that poor personal credit will lead to poor repayment of their business loan. All else equal, a lender would prefer to work with a business in which the owner(s) demonstrate strong credit trustworthiness. Positive Cash Flow: Cash flow is the net amount of cash moving in and out of a business. Businesses that have significantly more cash coming into their business than out tend to be viewed as a better credit risk by commercial lenders. Businesses with more bank deposits and balances are considered more capable of making their monthly loan/lease payments on time. All else equal, lenders typically prefer to work with businesses that maintain higher available balances in the bank account.Businesses can’t expect to scale without access to bank loans or outside financing. Establishing strong business credit builds your business credibility and is an essential part of business expansion. Benefits of building business credit Some small business owners probably don’t see the benefits of building their business credit until it’s too late. According to the National Small Business Administration, nearly 27% of businesses claimed they couldn’t receive the funding they needed and prevented them from growing. But funding and growth aren’t the only benefits of starting business credit early. Some others include: Shifting the risk and liability off you personally. By establishing business credit, a business owner can free up their personal credit to benefit themselves and their families.Enhancing the liquidity of your business. By establishing credit, a business may be able to borrow more, allowing them to keep more cash in their bank account to better run their operation on a day-to-day basis. As your business builds credit over time, its reputation with lenders becomes stronger and more secure. This puts your company in a better position to acquire the assets they need to grow and expand profitably. If your company needs different pieces of equipment for different jobs, strong credit gives you the ability to get the right kind of equipment while keeping your personal credit separated from business expenses. Overall, establishing your business credit adds more purchasing power to your business. Plus, you’ll have the peace of mind knowing your personal credit is protected. How do you establish business credit? One way to start establishing business credit is to work with a lender that reports to others how you repay your business loans. In essence, your loan can work as a reference to future lenders that you do, or do not, repay your obligations on time. Your business’s recent pay history carries more weight than past pay history. Therefore, in the event your business hits a rough patch and becomes delinquent on its payment obligations, you can work to rebuild your business credit by reestablishing a timely payment practice and keep those on-time payments from going for an extended period. New businesses should ask potential lenders how they plan to report their pay performance. If a lender does not share your pay history with others, talk to other lenders who do. That makes sure your business can start to build a public record of trustworthiness and make it easier for you to obtain competitive business financing going forward. Why is business credit important? If you want to grow your small business and acquire equipment in the future, business credit is vital for securing financing. The fact is, small businesses can’t expect to always purchase their equipment with cash. The sooner you start establishing business credit the better. Here’s why: As your small business scales, you’re going to need access to more funds and better cost control.As your small business takes on more work, getting reliable customers, and bigger orders, you’re going to need funds to purchase equipment.When you acquire equipment, the cost of financing is directly correlated to the strength of your business credit. The best way to acquire competitive financing is to start establishing business credit with a lender that’s the right fit for you. By building the proper business credit, it allows your small business to maintain liquidity for a rainy day. This is where having exceptional business credit is essential in letting a lender’s money work for you. Start Building Your Business Credit With Beacon Funding Today Everyone has to start somewhere. As a young business looking to establish credit, you need an equipment lender that has your goals in mind. Unlike traditional lenders, Beacon Funding is comfortable helping startup companies build their business credit – we have your long-term goals in mind. For over 30+ years, Beacon Funding has helped small businesses grow and expand. If you’re interested in establishing or expanding your business credit history, contact us today and we’ll help you. About the Author Jon Flagg – Senior Financing Consultant Beacon Funding Jon is a high-profile Senior Financing Consultant with a professional track record of providing efficient equipment financing for small business owners. He not only prides himself at taking the time to understand your business, but also to become a dedicated asset to your company. Jon understands business markets and uses his knowledge and resources to maximize their potential growth. Since joining Beacon Funding in 2017, Philip prides himself on working hard for every one of his clients with financing that’s tailored specifically for them. In his free time, Jon enjoys traveling, watching sports, snowboarding, and tuna fishing on the great Atlantic Ocean. Email: JFlagg@beaconfunding.com Phone: 347.338.6441 The post Establishing & Understanding the Importance of Business Credit appeared first on Beacon Funding. View the full article on Beacon Fundings Blog

Per the Equipment Leasing and Financing Association, “In 2019, a projected $1.8 trillion was invested by U.S. businesses, nonprofits and government agencies in plant, equipment and software. Approximately 50%, or $900 billion of that investment, was financed through loans, leases and lines of credit. America’s equipment finance companies are the source of such financing, providing access to capital”. With so many equipment financing options available, how will you know which equipment financing lender is most likely to approve your application? Here are some things to think about when seeking approval for your next equipment financing transaction. Want to skip ahead and see if your business is eligible? Click here and check if your business qualifies. What is qualifying criteria? When you apply for equipment financing, lenders ask questions and check if a business is eligible for a loan. Many traditional lenders have strict credit criteria to determine whether to approve your application. How the process generally works with traditional lenders: Standard questions are asked and put into an application. Your application is typically processed by a computer or as part of a scoring model. Depending on the results of the computer or scoring model, you are approved or denied and the $ amount, terms and conditions of your financing are granted based on the lender’s credit scoring model.Traditional lenders routinely decline applications that do not conform to their credit model. At Beacon, we still review the same criteria as traditional lenders, but our credit window is typically wider in the core markets we serve. While other lenders stop at credit scores, our specialization in several key markets allows us to say “yes” to more businesses when they apply for equipment financing. Let’s take a minute to compare how Beacon Funding’s credit criteria may be different than the traditional lender. 5 Common Criteria Considered for an Equipment Financing Approval Here are five common criteria and how Beacon Funding and traditional lenders may view them differently: Personal Pay History: Traditional Lenders: Personal credit history is an important factor reviewed by all lenders, even for equipment financing. How a small business owner pays their personal obligations provides good insight into how they may also pay their business obligations. Common measures of personal pay history often include: Transunion Experian EquifaxBeacon Funding: At Beacon Funding, we too review your personal pay history. However, we also look at other criteria such as the value of the equipment you are financing. Therefore, if you do not have a perfect pay history, we may still say yes to your application as long as we are comfortable with the value of the collateral. By being an expert in certain industries and asset types, we can still get you approved when other traditional lenders cannot. Business Pay History: Traditional Lenders: Business credit focuses on how your company has historically made payments on their business loans, leases, and other obligations. Common measures of business pay history may include: Dun & BradstreetPaynetBeacon Funding: Similar to personal credit, Beacon Funding also reviews your business’ past corporate pay history to assess how you may repay our lease/loan. However, our niche expertise allows us to see value in the underlying equipment even when your corporate pay history is less than perfect. This allow us to approve +7 out of 10 business applications in our core niche markets. Equipment Type: Traditional Lenders: Most banks are not asset-based lenders. In other words, their credit underwriting process puts very little emphasis on the underlying collateral. Alternatively, traditional lender credit models put much more importance on personal and business credit scores and pay history. As a result, traditional lenders often decline unknown, used or high-mileage equipment when the applicant does not have strong personal and/or business credit and pay history. Beacon Funding: As discussed above, Beacon Funding’s strong equipment knowledge is a true competitive advantage, allowing us to approve applications for businesses in our core markets. Our strong understanding of equipment values allows us to say yes even when other areas of the credit applications may be blemished. Our equipment expertise may also allow us to be more competitive than bank financing when working with stronger credit businesses seeking to acquire equipment in our comfort zone. Finally, our strong industry asset knowledge allows Beacon Funding to approve a wider variety of used equipment and high-mileage equipment financing applications. Time-in-Business: Traditional Lenders Banks oftentimes want to see a long business operating history with financial success in order to approve your business for new equipment financing. Their logic: If you ran your business successfully for the past 10 years, it is very likely your success will continue for the duration necessary to repay your equipment lease or loan. Beacon Funding: What happens if you don’t have a long-standing business operating history? How do you obtain equipment financing for the first time? Beacon Funding works with both start-ups and established businesses. So, how does Beacon Funding get comfortable providing a credit approval to a new business? You guessed it… by being an expert on the values of the equipment you are looking to finance. As explained throughout this discussion, our strong understanding and comfort with the equipment values in our core markets allow us to offer competitive equipment financing approvals even when an applicant business has little or no operating history. Cash Flow: Traditional Lenders: Traditional lenders typically require strong business cash flow prior to approving an equipment financing transactions. To calculate cash flow, banks often require 2-3 years of business financial statements to ensure that an applicant’s business revenues are strong enough to pay all their current obligations in addition to the incremental monthly payment on the new equipment financing. Beacon Funding: So what happens if a business doesn’t have 2-3 years of accountant prepared financial statements? Or what if you are a young business with limited revenues? In that case, traditional lenders may not be your best option for equipment financing. At Beacon Funding, we typically do not require accountant prepared financing statements or +2 years of operating history. Rather, we will simply ask you to provide us with your last 90 days of business banks statements. Your recent banking activity is typically all Beacon Funding will need to get comfortable with your business operations. Let Beacon Funding approve your business for equipment financing! Let Beacon Funding provide your business with an equipment financing approval like it has for tens of thousands of businesses throughout the United States just like yours. Our friendly and knowledgeable financing consultants will help your business acquire the equipment it needs in no time at all. Related Resources: Online Application: https://www.beaconfunding.com/applyDownload Mobile App: https://beaconfunding.com/about-us/mobile-appEstimate A Monthly Payment: https://www.beaconfunding.com/equipment-financing-calculator-estimate-your-monthly-paymentAbout the Author Philip D’Aquila – Senior Financing Consultant Beacon Funding Philip is a courteous and professional Senior Financing Consultant who works hard to help his clients achieve equipment ownership. As a graduate of the University of Illinois, Philip provides smart ways for his clients to grow their small business and make their dreams a reality. Since joining Beacon Funding in 2017, Philip prides himself on working hard for every one of his clients with financing that’s tailored specifically for them. In his free time, Philip enjoys watching sports, listening to new music, traveling, and searching for the best pizza in Chicago. Email: pdaquila@beaconfunding.com Phone: 847.469.1365 The post How Do You Qualify for Equipment Financing That’s Just Right For You? appeared first on Beacon Funding. View the full article on Beacon Fundings Blog

To our customers, I want to take a moment and say thank you. Thank you for trusting Beacon Funding and providing us the opportunity to support your business. We don’t take your trust lightly. Your success is our priority. No matter how challenging the times, Beacon will continue to work tirelessly to provide your business with the best equipment financing experience possible. As I meet with our staff and hear about our customers’ successes over this past year, I am grateful. Every day we are reminded that our organization’s ongoing success is a direct reflection of the many relationships we have with great businesses just like yours. I also wanted to encourage you to provide us your feedback. Don’t hesitate to reach out to us to share your thoughts, comments or if you need assistance. Keep us informed and let us know how Beacon Funding is doing. We’re always willing to listen and hear how we can improve and help your business grow. Best wishes. -Toby McDonough, CLFP President The post Happy Thanksgiving from Beacon Funding appeared first on Beacon Funding. View the full article on Beacon Fundings Blog

Getting funds to purchase your equipment shouldn’t be hard. Watch the video to see how easy you can apply for equipment financing at Beacon Funding in six simple steps: We get it – your business needed equipment yesterday. Getting the funds to afford expensive purchases isn’t always easy. Sure, there are lenders in the market today that can provide equipment financing, but what if you’re just starting out? Some options aren’t available to every Average Joe. But with Beacon Funding, you’ve got an equipment financing partner you can count on regardless of your business situation. Financing Your Equipment (6 Simple Steps) With traditional lenders, the first step of applying can be a hassle itself and take too long. That’s not the case with Beacon Funding. Our quality service can get you the capital to get equipment that grows your business in six simple steps: Step 1: Quick and Easy Application To start the process, you will fill out a quick and easy application. The application process is estimated to take less than 10 minutes to complete. Beacon’s application is as simple as applying over the phone, online at beaconfunding.com/apply, or via our mobile app (download at Apple’s App Store or on Google Play). Our application process provides you the opportunity to authorize your bank to send Beacon Funding your business’s past 90 days electronic bank statements. Providing us with your recent electronic banks statements just takes a few clicks, is secure, and ensures you earn the most competitive equipment financing approval possible. For businesses with less than 2 years in business: We request you answer a start-up business questionnaire.The 17-question form allows you the opportunity to provide us insight into your plan to help you grow your new business. Our start-up business questionnaire is estimated to take less than 15 minutes to complete. We also ask applicants to complete our COVID-19 Business and Continuity Plan designed to provide us insight into how you plan to keep your business running during the current pandemic. Step 2: Discussing Your Business Goals Your success is our priority – that’s why you can expect a call from one of Beacon Funding’s dedicated financing consultants. This short phone call will provide you with a friendly contact at Beacon Funding who you can turn to with all your questions. We want to make sure you get the best financing that fits your business needs, which is why we take the time to discuss your goals and equipment financing expectations. During the conversation, your financing consultant will discuss with you: How much money you are looking to put down on the transaction?How much would you be comfortable paying each month? Our goal is to set you up for success and provide financing that’s just right for you. Step 3: Submitting Your Credit Package for Approval After discussing your business goals, your dedicated financing consultant will then submit your credit package for approval. Here are some criteria Beacon Funding considers when approving an equipment financing transaction: Time in businessCorporate pay historyPersonal pay historyBusiness cash flow (i.e. bank statements)The type and quality of the equipment being financedKeep in mind: Your application doesn’t need to be perfect. However, the more strengths you have in each area, the more likely your credit package will qualify for approval. Step 4: Approval Letter With each equipment financing credit approval, Beacon Funding will send an applicant a formal credit approval. The goal of our approval will be to clearly and transparently outline all the key requirements, costs, and obligations related to your equipment financing transaction. Some of the items outlined on your approval includes the following: The amount financedYour initial cash requirement Your monthly payment amountThe number of months you will make a monthly paymentAny end-of-lease purchase optionAny and all fees associated with the transactionInsurance requirementsGetting approved for equipment financing with Beacon Funding is free and carries with it no obligations. Step 5: Quick and Easy Documentation Once you are comfortable with your equipment financing approval, Beacon Funding will proceed in sending you your formal equipment financing documentation. The entire documentation process can be conducted online via DocuSign, which allows even the busiest of business owners the ability to complete their documentation signing from any mobile device… even while on the go. Upon receipt of your signed documentation, initial cash, and evidence of insurance, Beacon Funding will issue a purchase order to the equipment seller. Typically, a purchase order is what the equipment seller will need to arrange pick-up or delivery of your equipment. Step 6: Accepting and Using Your Equipment Once your documentation is complete, you can inform Beacon Funding when you anticipate the pickup/delivery of your new equipment. On that day, we will contact you to get your feedback as to whether or not you have possession of the equipment and that it meets your expectations. Beacon will not pay the equipment seller until you provide us with your verbal acceptance of the equipment over the phone. Once you do, we will pay the equipment seller and you can begin making profits with your new equipment! Like the tens of thousands of other customers before you, Beacon’s goal is to provide your business with a top-quality equipment financing experience. We are here to support you and your business goals and we want to hear from you, so please take a few minutes to complete your post funding survey. Your feedback will go a long way in helping us improve our equipment financing process. Start Your Equipment Financing Journey – Apply Today! As a business owner, we understand your time is valuable. That’s why we make it easy to apply for financing to get the equipment to grow your business. Your success is our priority, which is why we make it quick, convenient, and secure to get you the financing you need to purchase equipment. Get started today by applying online at beaconfunding.com/apply. The post How to Get Equipment Financing That’s Quick, Convenient, and Secure appeared first on Beacon Funding. View the full article on Beacon Fundings Blog

When an opportunity comes knocking or unexpected expenses arise, it may seem intuitive to rely on personal credit options like credit cards. However, this can tie up your personal credit lines. Establishing business credit is a best practice that will allow your organization to grow. Beacon’s here to help! How Can Business Credit Inject Cash Into My Company? A strong and consistent cash flow is always ideal for any business. Cash allows you to face challenges, overcome setbacks, and take advantage of opportunities as they arise. While strong business profits are fundamental for any business operations, it doesn’t always mean you will have enough cash when it’s needed. Maintaining strong cash liquidity is a key ingredient in every successful business. So how do you know which working capital loan is best for your situation? To assist in your analysis, Beacon Funding has created a side-by-side comparison of working capital loans, sale-leasebacks, and credit cards. Let’s review how each may help you successfully manage your business. Working Capital Are you getting opportunities to work with larger clients but unsure how to get the upfront cash to fund the project? Beacon Funding’s working capital loan is designed to help businesses take advantage when profit opportunities arise. Applicants who meet eligibility requirements may qualify for upfront cash up to $150,000. Working capital loans allow you to put cash into your business without having to pledge any personal or business assets as collateral. You can use the funds to finance your company’s daily operations like payroll, supplies, repairs, or other bills while waiting for future income from your clients. When the right potential opportunity is in place, working capital can quickly help your business access the cash it needs to grow. Working capital not only provides a chance to work on larger projects, it also can potentially provide momentum to expand your operations. A working capital loan can help fulfill contracts and provide opportunities to build positive business relationships with existing and new clients. If your business could benefit from a cash injection, this article shows an in-depth look of the benefits of using working capital for your business. Sale-Leaseback When your business faces the need to offer a new service, find money for repairs, or expand to a new location, do you know how you’ll get the cash to invest in your business? If you own your equipment outright, a sale-leaseback can help you leverage its value to free up cash. A sale-leaseback allows your business to tap into its equipment equity to generate cash flow. You can then use the cash to invest in your business. One of the real advantages of a sale-leaseback is being able to grow your business while continuing to use your sales leaseback equipment to make profits. This process also helps establish your business credit. Sale-leaseback proceeds can help your business better handle unexpected expenses. Compared to other unsecured working capital loans, sale-leaseback financing is typically less expensive because it’s secured by a business asset and has less risk to the lender. In addition, sale-leaseback loans often have a 24-36 month term, allowing repayment of the loan to take place over a longer period, and puts less pressure on your business cash flow. Your business also remains agile while leaving other credit lines available for day-to-day expenses. Leverage your business’ equipment equity and use the cash proceeds to expand. The amount of cash you receive from a sale-leaseback loan is typically determined by an equipment appraisal, condition report, and/or comparable analysis. How recent you purchased your equipment can also impact the amount of equity in your equipment. Purchases made less than 90 days agoMay yield cash equal to 80-100% of the purchase pricePurchases made more than 90 days agoMay yield cash equal to 60-80% of the estimated market valueCompared to other unsecured cash loan options, a sale-leaseback may offer lower financing costs while allowing your business to retain use of the equipment and continue to generate revenue. Learn more about how Sale-Leaseback can inject cash into your business and keep you operating. Beacon Funding’s Quick and Easy Financing Many business owners assume getting working capital loans or sale-leaseback financing is a long, drawn-out process. Luckily, with Beacon Funding that isn’t the case! With an easy online application and a dedicated financing expert, we can help you get a quick and informed decision. In fact, you could get approved within 24 hours. Talk with a financing expert at 847.897.2499 or contact us online to see which cash services option has the best ROI for your company. The post From Financing Options To Equipment Ownership appeared first on Beacon Funding. View the full article on Beacon Fundings Blog

When you’re planning your next business move, pivoting direction is easier when you have the right financing to support your decisions. Having access to cash allows your company to be agile when opportunities or unexpected expenses arise. A lesser-known product to traditional equipment financing is a sale-leaseback. Many equipment lenders consider this “the key to unlocking the equity in your equipment” because it leverages the value in your equipment to free up cash. Let’s start with equity: In simple terms, equity is the market value of your asset minus any debt related to the asset. With a sale-leaseback, you can use that equity to get cash. You may be wondering, “How is the value of my equipment determined?” Typically, asset values are derived from a combination of asset condition, asset appraisal, and/or asset comparable analysis. What is a Sale-leaseback?­­­­ A sale-leaseback is a type of transaction that allows you to convert the equity in your equipment into cash. A sale-leaseback is particularly effective because the business is able to retain possession and use the asset throughout the entire transaction. That way, your asset can continue producing revenue while also helping to boost cash flow. How does a sale-leaseback work? Once a business identifies a cash need and an asset with sufficient equity, here is how they can go about obtaining a sale-leaseback: Application: Beacon’s Business Credit Application is a simple, one-page document that can be completed online from any mobile device. The application allows the business to communicate equipment financing needs and expectations. Approval: Upon receipt of your application, our expert equipment financing consultants will contact you to understand your needs and seek the best possible equipment financing approval. You will be provided an approval letter that, among other things, will indicate how much in proceeds you can expect from you equipment. Depending on the circumstances, a sale-leaseback transaction may yield from 60-90% of the equipment’s original value. Funding: Upon funding, Beacon provides your business the cash proceeds and takes a lien on the sale-leaseback asset(s). Repayment: Then, you will proceed to pay back the lender via a schedule of monthly payments, typically lasting from 24-48 months. Once payments are made in full, ownership of the asset is transferred back to the business.Pretty straightforward, right? So, why even use a sale-leaseback? Top 4 Benefits Of A Sale-leaseback 1. Boost your cash flow One of the advantages of a sale-leaseback is it enables you to get cash from equipment you already own. When done strategically, you can use the cash flow to grow your business and increase your revenue potential. Some effective ways you can use sale-leaseback proceeds to amplify your business include: Offering a new serviceHiring more team membersExpanding to a new locationSupport your business’ working capitalIn addition to extending your business’s potential with the increased cash flow, a sale-leaseback is also a great way to pay for expenses such as equipment repairs. Here’s an example: Let’s imagine one of your tow trucks recently broke down and needs a new engine. Let’s say the cost to replace/repair your truck’s engine is $7,500… but you don’t have the cash to pay the bill. You know that every day your truck sits in the shop is another day’s lost revenue for your business. The longer your truck is off the road, the more it’s costing your business. With a sale-leaseback, you can use the equity in your equipment to pay for the repairs. By using sale-leaseback, you’ll be able to pay back the $7,500 engine repair costs over the next 24-36 months, making it easier to manage. 2. Keep possession of your equipment to generate profits One of the unique perks of a sale-leaseback is it allows you to continue using your leased asset. Even though you transferred the title or added a lien holder to the current equipment, you still maintain possession of your equipment – keeping it working in your business to build revenue. 3. Fixed repayment structure The repayment structure for a sale-leaseback operates very much like a traditional financing agreement. Repayment of a sale-leaseback will be in the form of a fixed monthly payment typically over a 24-36 month term. Unlike credit cards, this structured repayment program helps reduce financing costs. 4. Greater ROI Because the contract is secured by a piece of equipment, a sale-leaseback is often less expensive than other unsecured forms of financing including credit cards. Common Questions about Sale-leaseback Why would you do a sale-leaseback? When your business needs cash, a sale-leaseback is a quick, convenient, and cost effective option. Sometimes smaller businesses don’t have access to lines of credit from a mainstream bank. A sale-leaseback is a cost effective alternative because, as a secured loan, the lenders risk is less. Unsecured working capital options, such as business credit cards, have more risk to the lender and are typically more expensive. What are the requirements for a sale-leaseback? Sale-leaseback transactions are not a viable option if a business does not have sufficient equipment equity to meet their cash flow needs. Assets substantially encumbered by other lenders do not make viable sale-leaseback candidates. How much cash will I receive from my sale-leaseback? Here are some general leaseback guidelines when working with a sale-leaseback: Equipment Purchased Less Than 90 Days Ago:You may be able to get cash proceeds equal to 80-100% of the purchase price. Equipment Purchased More Than 90 Days Ago:You may be able to get cash proceeds equal to 60-80% of the estimated market value.What happens after the lease term? Upon repayment of the sale-leaseback, the lender will release their lien and/or transfer the title back to you free and clear. How soon can you expect to get cash? For qualified applicants, it is reasonable to assume you can get cash proceeds from your sale-leaseback within 3-5 business days of application. Is Sale-leaseback Right for Me? If you’re exploring different options on how to get cash for your business and have equity in your current business equipment, a sale-leaseback is definitely worth evaluating. Compared to other unsecured cash loan options, a sale-leaseback may be more cost effective and yield a higher return-on-investment. Best of all, it allows you to maintain possession of your equipment and continue to generate profits. What is best for your business is not always clear, which is why talking to an equipment financing expert is a good idea to best evaluate your options. If you are interested in learning more, contact us today and we can help grow your business with equipment financing tailored specifically for you. About the Author Stephanie Richards – Certified Lease and Finance Professional, Business Development Consultant Beacon Funding Stephanie is a Certified Lease and Finance Professional (CLFP) that started with Beacon as a Business Development Consultant in 2012. She prides herself at working hard to help small business owners build and grow their version of the American Dream. Whether you are just getting started or have been around for years, Stephanie will work with you to find a financing solution that fits your budget. “It takes money to make money,” and Stephanie can help you with that. In her free time, you will find Stephanie with her family and friends, hiking, visiting a beach or making S’mores over a backyard bonfire. Email: srichards@beaconfunding.com Phone: 847.897.2735 The post Pumping Cash Into Your Business with Sale-Leaseback [The Key to Unlocking The Equity In Your Equipment] appeared first on Beacon Funding. View the full article on Beacon Fundings Blog

For business owners, opportunity cost haunts each decision. Am I doing what is best for my business? Will this decision make it harder to meet next month’s payroll? Will I regret losing potential business if I did not take a chance on this opportunity? If these questions sound familiar, you are not alone. I receive calls each day from business owners just like you. When an opportunity comes knocking, it may seem intuitive to rely on personal credit options like credit cards or home equity lines. However, business owners put themselves at risk when they pledge personal assets or use personal credit to fund their business needs. What other options do you have? As a financial consultant, my days are dedicated to helping business owners answer questions like “How do I get cash for my business?” and “Which solution will I get the best return-on-investment (ROI) for my business?” I work closely with business owners to help them analyze their investment opportunity, potential risk, and return on investment. My goal is to help them find the right solution to overcome potential challenges. While a working capital loan is not for every situation, I have seen many strategic business owners recognize the right opportunities to leverage cash to produce a significant return. What is a Working Capital Loan? Working capital is an unsecured (no collateral) cash loan that can provide funds to strengthen your business and expand your operation. As an example, say you presented a new opportunity to start a new relationship with a large client but lack the upfront cash to purchase the needed materials to get the relationship started. A working capital loan could be the ideal solution allowing you to take advantage of this opportunity. Simply put, a working capital loan is an effective and convenient way to get cash fast. Having access to cash provides your business the ability to scale. With such growth, you may need to acquire, upgrade, and maintain physical assets like property, buildings, personnel, equipment, etc. Without cash on hand, your business may not be able to make these necessary investments to experience grow. A working capital loan may allow your business to take better advantage of the opportunities it is presented. Real Life Examples of How Working Capital Loans Help Businesses Now that you have been introduced to working capital loans, let us explore how working capital may help a business grow. Below is a case study that I would like to share to provide a real-life example of how a working capital loan may benefit a business. To protect their identity, I will refer to the business owner as Steve. Working Capital Case Study Opportunity: Steve approached me about 3 years ago while bidding on a mid-scale construction project. To adequately complete the contract, he needed to purchase a significant amount of raw materials for around $100,000. This new obligation would be in addition to his company’s traditional payroll and operating expenses. However, Steve did not have enough cash on hand and if he did not secure needed funds, he would lose the contract to the next highest bidder. Anticipated Return on Investment: After the 6-8 months the job would take to complete, Steve expected a gross payout of roughly $700,000. His Challenge: Through our conversation, Steve explained that he could come up with the upfront investment. However, such an investment would have to be pieced together from a combination of savings accounts and credit cards. He ran a solid business, but this was the first time that such a large upfront investment would be required. Steve felt depleting his savings and maxing out his credit lines was a big risk to take. The Solution: I presented Steve with the option for a $100,000 working capital loan. We discussed the total cost of the working capital loan and then compared that cost to the $700,000 in revenue produced by the project and determined the working capital loan would result in a very strong return on investment. The working capital loan was also attractive since it did not require Steve to exhaust his personal savings and leverage his personal credit. Steve also like the fixed, scheduled repayment plan on the working capital loan that forced him to reduce his loan amount in a timely manner. Result: By providing financial guidance and thorough planning, Steve accurately forecasts payroll, insurance, labor, materials, and loan repayments to develop a competitive bid. He did all this while still feeling confident about the prospect of making money. Reinvesting the Profits: Ultimately, Steve won the contract and secured funding with a working capital loan. With the additional profits, he kept investing back into his business. After benefiting from a working capital loan, Steve has become a repeat customer utilizing the same strategy and logic to make ongoing sound decisions for his business.Building Positive Relationships for Future Opportunities Our successful initial working capital transaction allowed Steve and I to build a strong working relationship. This relationship has resulted in Steve and I conducting three (3) additional working capital loan transactions. Each loan helped Steve expand operations and grow profits. Common Questions about Working Capital How quickly can a business access working capital loan proceeds? The quickest I have ever funded a working capital loan is in a single business day. However, the entire process, application to funding, typically takes about two (2) business days. The goal of working capital is to fund as quickly as possible so your business can take advantage of as many opportunities as possible. To start the process, a business must compete a simple, one-page application and provide the last 90 days of business bank statements. The entire process is quick, convenient and can be conducted online, from any mobile device, accommodating even the busiest business owners. What industries benefit most from working capital financing? Some of the top industries served by working capital financing include auto repair, towing, retail, hospitality, construction, transportation, manufacturing, landscaping, healthcare, restaurants/franchises and beauty salons. My friend Steve worked in construction/transportation. What is a working capital loan not meant for? Working capital is not for everyone and not for every cash requirement. It is not a product meant to bolster your savings account or consolidate other debt. It is a solid product for business owners looking to expand their operation when they know that upfront cash will generate a strong return in a fixed period. How to Assess if Working Capital is Right for You Exploring your financing options can give your business the power to say yes. Say yes to new locations. Say yes to bigger contracts. Say yes to more business. Beacon Funding specializes in finding the right financing solution that suits your business goals. During the application process, I ask a lot of questions to understand what’s really important to your business, your goals, and how working capital may benefit you. Call 847-897-2499 and we can discuss: How will you apply these funds?How much money will this loan make you?Why do you need these funds?Like my friend Steve, businesses can take advantage of working capital to increase cash flow when it makes sense. Applicants who meet eligibility requirements can expect a completed process from application to funding in as little as 24 hours and may qualify for up to $150,000. If you have an opportunity for growth and are considering working capital consider filling out an application at beaconfunding.com/apply. The post Working Capital Loans [How to Get The Cash You Need To Grow] appeared first on Beacon Funding. View the full article on Beacon Fundings Blog

Looking for ways to get the funds you need to drive your business to its next level? As a strategic business owner, you know the value of having funds and being able to take advantage of opportunities at the right time. There are many products to help you with these opportunities, but choosing the right one can be tough. That’s why we created a guide that helps you compare three different financing products: working capital loans, sale-leaseback, and business credit cards. By using this guide, you can decide which product best works for your buying potential and growing your business. Sale-Leaseback vs. Working Capital vs. Credit Card Sale-Leaseback Working Capital Credit Card Loan Amount $50,000 $50,000 $50,000 Initial Cash $939 $0 $0 Monthly Financing Costs $478 $625 $666** Annual Financing Cost $5,736 $7,500 $8,000 *Above Comparison Based on Average applicant credit risk. Interest only credit card payment and industry average pricing **creditcards.com/credit-card-news/rate-report/ Let’s review how each of these products compare and what makes them different. What are their benefits? What Do You Get With a Working Capital Loan? If you need cash flowing into your business, a working capital loan is a powerful option. It’s a way to fulfill contracts, fund large-scale projects, or other projects that have high return on investments. Due to its zero upfront charges, you can start utilizing your funds to generate profits in a relatively short amount of time while building your business’s credit. A working capital loan is more expensive than a sale-leaseback because it’s an unsecured loan. Unlike a credit card, there are no annual fees and no compounding monthly interest. Payments are fixed and terms are as short as 3 months. Additionally, getting a working capital loan is a faster start to finish process. Beacon Funding’s application to funding process is streamlined and is much quicker than a credit card. The entire process can be completed in 24-48 hours with cash deposited directly into your account, giving you tangible funds for immediate use. Benefits of Working Capital Loan: Access to large amounts of funds quickly.Increasing buying potential and lowering margins.No annual fees.No compounding monthly interest*.Build business credit, making future purchases easier.Fixed monthly payment and total repayable.With its effectiveness and speed, a working capital loan delivers more power than a sale-leaseback and credit card. An Example of When to Get a Working Capital Loan Susan’s Embroidery gets a contract to make all the baseball hats for every little league team in the city. She will make a profit of $40K from the contract, but needs $15K to purchase materials, cover payroll, overhead, and other additional costs. If Susan gets approved for a working capital loan, she will not only have the funds to cover the contract within 24-48 hours, but she will also receive a decent return on her investment allowing her to pay back the loan in a short amount of time. In this situation, a working capital loan worked best for Susan’s business because it allowed her to grow fast and pay her loan quickly. What Do You Get With a Sale-Leaseback? A sale-leaseback is an effective way to get cash and strengthen your line of business credit by unlocking the equity in your equipment. It requires a small upfront investment and offering up an asset as collateral, but out of the three options, a sale-leaseback allows you to take advantage of the lowest monthly and annual financing charges. A sale-leaseback offers a low fixed monthly payment and a cheaper total repayable. This allows you to plan in advance for long-term goals and budget for the future. It also helps you avoid high interest rates you get from your average credit card. Unlike some credit card lenders, there are no annual fees and the application process for a sale-leaseback is streamlined. Beacon Funding can approve and fund your transaction in 3-5 business days. Benefits of Sale-Leaseback: Inexpensive way to increase liquidity for long-term goals.Competitive low interest rates.Fixed monthly payment effective for budgeting.No compounding monthly interest.Streamlined application process.An Example of When to Utilize Sale-Leaseback John’s Towing Service wants to branch out and include automotive repair in his existing service. At the moment, John doesn’t have the funds to hire a new auto mechanic and he’s losing clients every day he doesn’t have a mechanic. John owns 4 tow trucks – if he uses 1 of them for a sale-leaseback, John will get the funds to hire a new mechanic, expand his towing operation to include automotive repair, and generate more income with his added service while helping his business establish credit. In this situation, a sale-leaseback worked best for John’s business because it allowed him to keep generating revenue and get needed cash to expand his operation’s potential. What Do You Get With a Business Credit Card? A business credit card doesn’t require any upfront charges and an asset to get started. However, because it is unsecured and is a revolving line of credit, there is no real fixed repayable schedule and has significantly higher costs than the other products. A credit card comes with other limits: Compounding monthly interest, delays from approval to receiving the card in the mail, and annual fees. However, it is a viable means for making purchases. Benefits of Business Credit Card: No asset required for access to funds.No upfront fees.Limited business credit required.Business credit cards are a viable resource for many businesses, but there are more viable options to consider when you need access to cash that offer fixed payment amounts at a cheaper cost of funds. These work well for most businesses, but if you need funds sooner than later, large amounts for bigger purchases, and don’t want fixed repayment amounts, a credit card might not be your best option. We’re Here to Help Achieve Your Goals Growing pains are never easy, but you don’t have to go through it alone. Whether you have a contract to fulfill or have an opportunity to expand your business potential, each of these three products provides different benefits. Many business owners assume getting financing is a long, drawn-out process. That’s not the case at Beacon Funding! With an easy online application and a dedicated financing expert, you can get a credit decision within 24 hours and, depending on your needs, access to cash in 1-2 business days. Interested in one of these financing products? Apply for one today and we can help you get started. Our team of expert consultants are willing to talk with you to see how our Working Capital Loan and Sale-Leaseback programs can help meet your business goals. Talk with a financing expert at 847-693-3993. The post A Guide to Financing Products for Your Success | Working Capital Loan | Sale-Leaseback | Credit Cards appeared first on Beacon Funding. View the full article on Beacon Fundings Blog

Did you know that you can take a tax deduction for 100% of your equipment’s cost in the year you buy it using bonus depreciation and/or the Section 179 deduction? Bonus depreciation and Section 179 deduction are especially beneficial to companies that need to purchase significant amounts of equipment to operate their business. By accelerating deductions, companies are able to take advantage of the time value of money by essentially “deferring” income taxes to future years. Bonus depreciation and the Section 179 deduction are the U.S. government’s way of encouraging small businesses to purchase equipment by providing tax incentives while also stimulating the economy. Equipment gets sold and used, and profits get made: It’s a win-win. What is the Bonus Depreciation Deduction? Businesses can deduct 100% of the cost of certain assets in the first year they are placed in service. Bonus depreciation can be taken on all qualifying new and used assets placed in service between September 28, 2017, and December 31, 2022. Under current regulations, starting in 2023, the percentage of allowable bonus depreciation will be reduced by 20% per year. Most types of business property, except for real estate, qualify for this deduction; however, special rules are in place for certain assets such as passenger vehicles used for business. Examples of qualifying equipment include: Business equipment, such as:Tow TrucksBoom TrucksCranesSeptic Pumper TrucksEmbroidery EquipmentScreen Printing EquipmentOffice FurnitureComputers and other office equipmentKey Points for the Bonus Deduction: There is no annual limit, no matter how much equipment you purchase each year.You can take the deduction even if it creates a loss for tax purposes.For any year that you elect bonus depreciation, you must take the deduction for the full cost of all assets of the same tax asset class acquired that year, for example all 5-year assets; but since the election is made annually, taking the deduction in one year does not affect your ability to elect, or not-elect, it in the next year.What is the Section 179 Deduction? A business can elect to expense the cost of any new and used Section 179 property (most tangible goods used by businesses, including “off-the-shelf” software and business-use passenger vehicles qualify) and deduct it in the year the property is placed in service. However, the asset must be used more than 50% for business. The maximum Section 179 deduction for 2020 The maximum Section 179 deduction for 2020 is $1.04 million, and the limit increases slightly each year for inflation. The Section 179 deduction is phased out for businesses that have a large number of property additions during a tax year. The deduction begins to phase out once your qualified asset purchases for the year exceeds $2.59 million for 2020, and this limit is also adjusted annually for inflation. Use of the Section 179 deduction is limited to the amount of a business’ taxable income, therefore it cannot create or increase a tax loss. If that occurs, the section 179 deduction will be carried forward to future years where there is taxable income to offset it. Key Points for the Section 179 Deduction: There is an annual limit.The deduction cannot create a loss for tax purposes. If it does, the deduction will be limited to taxable income and the remainder carried forward against future taxable income.You may take the deduction for a portion of the cost of an asset and have flexibility over which assets to use the deduction on.Key Takeaways: Bonus and Section 179 depreciation both allow businesses to deduct some or all of the cost of eligible purchases the year they acquire them rather than using conventional depreciation to spread the deduction out over multiple years.Cash flow is improved by allowing the tax savings to be used to “finance” a portion of the cost of the assets purchased.Where Do I Start? (From Financing to Equipment Ownership) The road to equipment ownership isn’t always easy, but regulations like Bonus and Section 179 depreciation are available to soften the financial burden of new asset purchases. And fortunately, the deductions are available to businesses for all equipment purchases, even if the equipment is financed! Our goal: To see you and your business succeed. If you need help purchasing equipment to achieve your business dreams, contact us. We have over 30 years invested in helping businesses finance their equipment. Remember, the sooner you plan ahead for equipment financing, the better chance of not only guaranteeing the equipment is available for purchase, but seeing the benefits of tax savings before the year ends! About the Author Tobey Wilson, Shareholder, CPA, CLFP ECS Financial Services Tobey Wilson is a Certified Public Accountant (CPA) and Certified Lease and Finance Profession (CLFP). He joined ECS Financial Services in 2002 and became an ECS shareholder in January 2015. Tobey’s expertise includes financial statement compilations, reviews and audits, ERISA audits, financial projections, business and personal tax preparation, and management consulting, as well as personal and corporate tax planning. Tobey is active in his church and his son’s cub scouts, where he holds the position of Treasurer, and he enjoys spending his free time with his family traveling and visiting presidential museums and homes. Their goal is to visit every state! Email: TWilson@ecsfinancial.com Phone: 847.291.1333 The post Business Depreciation [What Is It and How Can It Improve Cash Flow?] appeared first on Beacon Funding. View the full article on Beacon Fundings Blog