Whether your goal for 2020 is to start a new business or expand your existing cannabis sales, there are varied ways to get the essential equipment. First, consider if new or used equipment is preferable in your situation. Obviously, new equipment comes with the latest features and peak performance. But, there are deals to be had on older, gently used equipment. Many companies specialize in selling used cannabis business equipment that they fix up and warrantee. If you don’t need something shiny and new with all the bells and whistles, choosing used might be an easy way to save your business some money.
Next, decide if buying, leasing, or financing your equipment will work best for your company. Leasing is ideal for items that need to be replaced frequently. Buying can be better for something you plan to use long-term. But, just because you have the cash to buy something outright doesn’t mean you should. That money may be better spent elsewhere depending on your business goals. Business loans allow you to pay off equipment little by little with a low interest rate. Refinancing existing equipment can give you access to cash when you need it. It can also result in lower loan rates and better terms depending on market conditions.
If you choose to move forward with a loan, you’ll need to select one with a variable or fixed rate. Fixed rate loans offer stability, but monthly interest payments are usually higher. Variable rate loans can be a good match for entrepreneurs with a higher risk tolerance. Monthly payments are generally lower, though rates may jump significantly at the end of the loan term.
Shop around, because some cannabis business financing options can offer attractive perks like no prepayment penalties and delayed payment for more than a year.
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