A company's cash flow can be impacted by things ranging from money spent on utilities to money spent on construction equipment financing. To keep your business profitable, you have to be smart about your spending. This article looks at some ways to save your company some money when it comes to equipment finance.
Ask For Deals
Some of the most basic services needed to run your business, such as your telephone service, internet service, website hosting, and backup services, may be costing you more than they need to. Don't be afraid to talk to the providers of these services and ask about any discounts available or alternative services that could fit your needs.
Many companies will offer a discount for bundled services. If you are getting your internet service from one company and telephone service from another, you may be able to combine them into a bundled service that will save you money.
Check your cell phone usage, too. Many cell phone providers have different packages that can save you money. There is no need to pay for a larger package than you would normally use. Be careful though, you don't want to limit yourself to the point where you are being charged a penalty for going over your allotted time either.
When it comes to saving money on utilities, making your building more energy efficient can go a long way toward accomplishing this goal. Even if you can't afford to add insulation or put in more energy efficient windows, there are still smaller things you can do to reduce costs.
Switching to compact florescent light bulbs is one way to save money on utilities. These bulbs have a higher initial cost, but they last years longer than conventional bulbs. In addition, they take only a fraction of the energy to produce the same amount of light.
You can switch to cloth towels instead of disposal paper towels in the restrooms. Also, make sure the seals around your doors and windows are tight to prevent air leakage. Many electric and gas companies offer free energy consultations and will even come to your business for an energy inspection. Upon completion, they offer suggestions on how to improve your energy savings.
When it comes to costs associated with your equipment finance, don't be afraid to talk to the provider and inquire about refinancing. There are many construction equipment financing companies that will be more than happy to discuss your options.
Check Your Buying Habits
The way you purchase supplies and equipment can be costing you money. Always try to order supplies in bulk. Most suppliers offer a bulk discount. If your supplier doesn't, ask for one or check around for one that does. Watch your regular mail and email for any type of special advertising flyers from your suppliers. They will often offer a promotional period that you can take advantage of to order and save money.
Depending on your type of business, you may be in a position to trade your services to a supplier that can utilize what you have to offer. This can free up cash flow and perhaps turn down time for employees into something productive. Don't be afraid to talk to your supplier and ask directly what you can do to lower the cost of products offered. Remember, they want to keep you as a customer.
Insurance can be a major expense for any company. Talk to your agent and see if he can find a lower rate with a different company. You may not have to lower coverage to receive the same level of coverage. Even if you are able to save $100 a month, that's a full $1,200 over a one year period.
Construction Equipment Financing
Equipment finance can be a business' best friend or worst enemy. Construction equipment financing can vary according the type of plan you have selected. You want to choose equipment finance that is flexible with your business needs. You want a plan that can accept higher payments without penalty and have lower payments during your slower or off season periods when your company may have reduced or no income. You also want to look for construction equipment financing that has low fees and few, if any, penalties. If you're in a position to pay your equipment finance loan early, don't hesitate to do so, you'll save a lot of money on interest expense.
Construction equipment financing, utilities, and those everyday expenses to run your business all add up quickly. Look at your monthly expense carefully for any financial leaks. If you find any, investigate other options that can save you money. Many times, even a small savings, whether it's associated with equipment finance or your electric bill, can add up over time.
Christine O'Kelly is an author for Landmark Financial Corporation, the construction equipment financing experts. They specialize in working directly with their clients to design the perfect equipment finance and leasing solutions.