Why You Should Use a Business Loan to Update Your Landscaping Equipment
In this post, we’ll list five reasons you should use a small business loan to purchase new landscaping business equipment.
Why a Business Loan Should Be Used to Update Your Landscaping Equipment:
1. Expand Your Business
Having additional equipment allows you to take on more jobs simultaneously, leading to increased revenue. If you have multiple mowers, weed whackers, and other tools, you can take on more jobs, allowing you to expand your customer base. This also makes scheduling easier for your customers. You can take on last-minute projects, and customers will have additional availability to choose from. Plus, you could obtain the necessary equipment to expand into a different type of landscaping. For instance, if you only offer basic lawn maintenance, you could expand into lawn care design once you purchase the required equipment.
2. Increased Reliability
According to Lawn Management Magazine, one of the most common complaints among customers is that they’ve received incompetent, poor service from their landscape company. To be competitive and retain your customers, you must provide excellent customer service.
Having reliable equipment to get the job done is imperative. You don’t want your mower to break down halfway through cutting someone’s lawn. Additionally, the truck or trailer you use to carry your equipment must be dependable and able to carry the load. By using a loan to upgrade your equipment or vehicle, you can ensure that it’s completely functional and under warranty.
3. Better Tools for Employees
Employees who have access to better equipment can work more efficiently. Since the upgraded tools can make completing the work easier, they can work faster and get more done in a shorter amount of time. New equipment also increases the quality of your work. As equipment technology continues to develop, newer equipment will produce better-looking lawns.
Better tools can also be safer for employees. According to the U.S. Consumer Product Safety Commission, approximately 20,000 people are injured and 75 people are killed on or near garden tractors or riding lawn mowers and each year. When upgrading equipment, should ensure that it’s safe and will protect your employees. For instance, you might purchase earmuff-style hearing protectors, heavy-duty gloves, and safety goggles.
4. Tax Benefits
The IRS allows small businesses to take a deduction of $2,500 per piece of equipment purchased for that current tax year. If you paid more than $2,500 for the item, you may have to depreciate the asset over a period of time, or you may qualify to deduct the entire price of the item under the Section 179 Deduction. This deduction allows businesses to write-off the full amount of equipment and off-the-shelf software purchases up to $1,000,000 for the current tax year. A qualified tax professional can tell you if you’re eligible for this additional deduction. By entering the cost of the equipment and your tax bracket, you can use this deduction calculator to see how much money you’ll save under the Section 179 Deduction.
5. Save Money Long-Term
Many business owners believe it’s cheaper to fix broken equipment than to buy a new model, but that’s not always the case. If your new lawn mower is more fuel-efficient than your older model, you’ll save money in gas over time. Also, if it takes 20 minutes shorter to cut a lawn because of a newer model’s efficiency, you’ll save money in labor costs and can get more lawns mowed in one day.
Now that you’ve learned about the benefits of using a business loan to improve your equipment, it’s time to start researching your options. When purchasing equipment, always ask if you can get a discount on a large purchase order, and make sure you fully understand the warranty. This will help you maximize your budget, and will allow you to make the most of your business loan. Good luck!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.