Top 4 Tips When Financing Used Equipment in 2024
Kenneth O. King
Providing Healthcare Professionals With Working Capital & Equipment Financing Solutions | Approvals in As Fast As 24 Hours!
Did you know you can finance used equipment with Baceline Capital? It’s true!
If you find a piece of equipment in the used market(medical & lab), there’s a good chance we’ll finance it regardless of age as long as it’s in good shape and being sold at a fair price. In this article, we provide you with 4 tips to consider before financing your next used equipment purchase.
In this article…
Tip 1: Find a Lender Who Specializes in Financing Used Equipment
Not all lenders finance used equipment. To ensure your greatest chance of approval, work with a lending source with equipment expertise. Equipment-specific lenders, like Baceline Capital, are more likely to finance used equipment because they understand the value it brings to your business.
Why Baceline Capital should be your go-to used equipment financing source:
Whether you’re eyeing used equipment from a vendor or private seller, the team at Baceline Capital's ensure a quick, professional, and trustworthy application process.
Tip 2: Find Equipment in the Best Possible Condition
Conduct a Minimal Wear and Tear Assessment
Assess the physical condition of the equipment to gauge its wear and tear. Opt for equipment with minimal signs of use, as this often indicates durability and reliability.
Lower levels of wear can lead to reduced maintenance costs and a longer service life. Inspect critical components and surfaces, looking for any damage or excessive wear that could impact performance.
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Verify Equipment Functionality and Power-On
Ensure that the equipment is not only in good physical shape but also fully functional. Request a demonstration or test to verify that the equipment powers on reliably and performs its intended functions without issues. This step is crucial to avoid investing in equipment that may require immediate repairs or upgrades, adding unforeseen costs to your acquisition.
Opt for Rigorous Inspection Processes
Choose equipment that has undergone a thorough inspection process. This can include comprehensive checks by certified technicians to assess the equipment’s overall condition, performance, and safety. A documented inspection history provides transparency and confidence in the equipment’s reliability.
If you’re unsure about the inspection process, consider consulting with experts or relying on reputable sellers who prioritize quality assurance.
Tip 3: Ensure the Asking Price is Aligned with Fair Market Value
It can be difficult to determine the market price for used equipment, which could lead to you overpaying for equipment.
If you're unsure if you're getting a fair price, ask your lender. Baceline Capital financing consultants have the tools to evaluate if you’re getting a good deal and can recommend a fair price.
Remember: The longer equipment holds its value, the easier it is to get approved. Better terms may be offered for equipment with a longer resale value.
Tip 4: Take Advantage of Section 179 Tax Advantages
Thanks to Section 179, you can leverage the used equipment you financed for income tax savings.
What is Section 179? It’s a tax savings allows you to write off 100% of the equipment cost in the first year of financing, rather than spreading depreciation over several years. And yes, this valuable tax deduction applies even when financing used equipment.
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8 个月Equipment financing is a win-win-win for all parties involved. Good piece Kenneth.