If you’ve been thinking of expanding your business, now is the perfect time. A record number of business owners reported that they planned to expand their business, according to the NFIB Research Foundation's most recent optimism index survey. Many business owners take advantage of the many sales and opportunities of making end-of-year purchases. Plus, they may be incentivized to make purchases to decrease tax liability. Lenders are willing and waiting to provide the seasonal funding you need. Here are some ways that seasonal funding can be used to benefit your business this quarter:
1. Upgrade to New Equipment
The optimism index survey says that 41 percent of business owners reported spending on new equipment. An end-of-year purchase of new equipment can help fuel business demands since many businesses see an uptick in sales during the final quarter. Many business owners must contemplate if purchasing new equipment can help them stay competitive, therefore securing financing for equipment can help optimize cash flow as well as help you realize substantial tax benefits.
In fact, the U.S. government provides an incentive for businesses to purchase capital equipment. IRS Code Section 179 allows accelerated write-offs for capital purchases and is particularly helpful if your business is heavily run on machinery equipment.
You might also be able to benefit from using asset depreciation as part of your financial management plan. Many business owners benefit from being the owner of the asset, which can be accomplished through a RapidAdvance loan or line of credit. You could deduct depreciation as well as interest charges from your taxable income.
2. Buy a Company Vehicle
During the end of the year, there are vehicle sales all over the place because dealerships are trying to unload last year's model for newer models. If you are in the market for a company vehicle, seasonal financing can help you achieve this goal. According to the optimism index survey, 16 percent of business owners acquired a company vehicle.
3. Expand Your Facility
Now may be the time to expand your facility. This could be a new storefront or even a distribution center. Fewer people may be looking for commercial spaces during this time of year, so you may be able to find a good deal with less demand present to inflate the price. Buying a property now can allow you to have a fully operational location by the New Year.
4. Fund Inventory
You may have special inventory needs during the end of the year, such as a new collection or seasonal designs. Seasonal lending can also help you fund your inventory for this busy season. If you’re on the vendor side of business, business owners will likely consider purchasing products from vendors that have historically performed well during the fourth quarter. It’s a win-win!
5. Handle Payroll
Finally, you can also use your seasonal financing to provide overtime pay and bonuses to your existing staff. It’s not uncommon that many businesses hire additional help during the end of the year to help with holiday sales and to prepare for the next year. If you run your sales from the last year and a projection for the current year's numbers, you may be able to better gauge how strong consumer demand might be. Then you can use this information to determine how many new employees you will need to staff.
Secure Your Financing Today
Take advantage of the many opportunities that RapidAdvance has available for funding your business this time of year (and preparing for next year)! We offer fast decisions and can deliver your loan within three business days. We have a variety of business solutions that you can use to get right the financing you need.