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Q: How can we be credit-savvy in these economic times?

Rule 1: Avoid using cash and bank credit lines to pay for equipment. Cash is king right now. Conserve your cash for payroll, paying bills, and keeping yourself going if customers are slow paying their bills.

Rule 2: When you need equipment, consider working with an equipment financing specialist instead of a bank. Costs are typically competitive or even lower, but the terms are likely to be better and more flexible, such as little or no down payment (which conserves cash), possible tax advantages, and you’ll still have your bank available for other future credit needs. Plus there is almost no paperwork to complete or assemble, no waiting for approvals, and no hidden fees with reputable equipment specialists.

Rule 3: A great financing package includes more than just a good rate. Also take into account the up-front time to gather and prepare documents, flexibility in payments and terms, fees at the start and end, and so on. Banks typically require financial statements and tax records. Brandywine Capital needs only a one-page application and prepares all the paperwork for you. This one important difference alone can save a lot of time and money. Add in the potential tax advantages of financing — and it is worth an extra call to find out what each lender offers — and what they require of you.

Rule 4: Focus on the money side, not just the equipment. Many business owners are very diligent in choosing the right equipment — but spend little time checking out the best ways to pay for it. Commit to becoming more credit-savvy the next time you need equipment. A little homework can pay off.

If you'd like to become more credit-savvy, we'll be glad to help you get started. Email David Salome or call him today at (888) 344-2920.