Published December 13, 2016 | Updated July 11, 2022
The commercial truck industry is requiring upgrades to minimize emissions. Many industries are upgrading equipment to include GPS asset-tracking technologies. IT equipment needs to be upgraded seemingly every hour and a half.
Whether part of a regulatory move, a push for greater efficiency, or the need to keep up with competitors, the word “upgrade” has a big impact on business owners. And a bigger impact on cash, which for many businesses has already seen more than its fair share of challenges lately.
A Little Planning Helps
Most of the time, businesses understand the seemingly never-ending need to reinvest in their commercial equipment and technology. They just don’t plan for it. More than eight of 10 small business owners think about upgrades or replacements only in a break/fix emergency. No wonder everyone thinks of replacing the equipment they need as painful. Waiting until this big event to look at upgrades or replacements can be a very costly endeavor. Did you know that businesses that plan for capital equipment and technology acquisitions – versus ones that wait until the wheels fall off – have nearly 20% lower equipment acquisition costs?
Sinking Cash Into Equipment Is a Sinking Feeling
Another major reason why businesses feel the pain of upgrades is the cash drain. Virtually all classes of commercial equipment and technology lose value, but time after time business owners drop huge down payments on it or pay cash outright. Even if you produced three times the asset cost in revenue, what’s your return on that investment? There is no real merit to owning 100% of an asset worth half of what you paid for it in the near future.
Ease Your Pain
What if you just pay for what you use? You get a simple monthly payment for the use of equipment you’ll pretty much always need, and when the equipment is ready for replacement or upgrade, you get the new model and keep the monthly payment stream going. Taking this approach to commercial equipment and technology will ease your pain by keeping you up to date without cash flow spikes.
At LEAF, we help businesses with a simple, painless, and affordable way to handle the constant need for upgrades. In fact, our programs can keep you on the cutting edge of technology while taking the surprise out of the budget. And we keep it uncomplicated.