Have you thought about how your business could stay more relevant in the ever-changing and sometimes challenging marketplace? As technology improves, you could be losing out by not keeping up. By investing in new equipment, you can cut down on maintenance costs. Your small business may become more efficient, and you can benefit from attractive tax breaks if you’re purchasing new capital assets. Explore the following six reasons why you should upgrade your equipment.
You Can Often Find Great Deals on Equipment at the End of the Year
Equipment dealers can offer massive discounts at the end of the year to meet their sales targets. Still, machinery can be costly, and you may need funding to buy it. You can request small business loans through online lenders such as Kabbage. Kabbage provides small business funding designed to help business owners buy new pieces of equipment when funding may be short.
You Can Earn Tax Breaks on Capital Assets Purchases
In the past, when you bought new machinery for your company, you could only write off the cost gradually, usually over the span of the machine’s useful life. However, Section 179 of the IRC (Internal Revenue Code) helps companies buy new equipment and invest in their businesses. You can write off the amount of your purchase in one pass and considerably decrease your taxable profits.
Equipment Maintenance Can Be Costly
Owning old equipment can often be a headache as more malfunctions are likely to occur. These malfunctions can cause problems as sometimes production may have to be halted, plus you’re left facing a large maintenance bill. New machinery is expensive, but purchasing new equipment can be a more cost-effective choice in the long run.
Buying New Equipment May Be Better Than Leasing It
Many companies lease their equipment since the costs of buying new pieces of equipment may be a heavy financial burden. However, the lease period can be longer than you need, and sometimes maintenance may not be instantly available to you. If you own the equipment, you can repair it at any time and sell the equipment later once you no longer have a use for it.
You Can Improve Efficiency and Safety in the Workplace
No one wants to see an employee getting hurt. Old machinery can become faulty and potentially cause accidents. By upgrading your equipment, your employees will be safer, and you’ll be working with more efficient machines, which may break less often and can possibly increase your production.
You Can Stay Ahead of Your Competition
Knowing about new and upcoming technologies is good, especially if you can buy efficient equipment before your competitors. If a demand exists for your products or services, you’ll be able to offer them to your customers while your competitors lag behind you.
Overall, upgrading your company’s equipment shouldn’t be viewed as a massive expense, but an investment that has clear benefits attached to it. Although a new equipment purchase can seem expensive at first, your maintenance costs will be lower, your employees will be safer, and your output will be greater.