Looking to lease or finance?By Taf Baig
From the February 2005 edition of Cleanfax magazine. The last two years
have been excellent for businesses investing in new equipment, thanks to recent
tax cuts.
Three years ago, estimates showed that only one in five business owners were
familiar with Section 179 of the Internal Revenue Service tax code — a $100,000
"write-off" for equipment expenses.
Today, almost all involved in the carpet and furniture cleaning industry are
familiar with this beneficial tax break.
Taking advantage of savings Unfortunately, some business owners weren’t
prepared to take advantage of section 179 because of credit blemishes, which
prevented them from obtaining financing.
There are far fewer equipment lenders in the business today than there were
four years ago, and most of them tightened their credit criteria so much that
few qualify.
There were a few lenders, though, that took advantage of the scant finance
competition and increased their lending many times over by easing credit
requirements.
Unfortunately, there were many cleaners, manufacturers, and distributors of
equipment who were not able to find these lenders.
Get professional help… The next few years will bring new challenges to
the cleaning industry, as carpet care pros determine the best way to finance
equipment investments, while considering ever-changing tax laws.
Cleaners should rely on expert advice from tax professionals.
Before investigating every finance company on the Internet, ask your
equipment manufacturer or distributor whom they recommend — they deal with these
companies every day.
They can direct you to financial institutions that specialize in the cleaning
and restoration industry; companies that can answer your questions about
financing and help you obtain the best possible financial instrument.
Taf Baig, an Institute of Inspection, Cleaning and Restoration Certification
(IICRC)-certified Master Textile Cleaner, started a successful carpet cleaning
company — the Magic Wand Company — in 1991 and sold it in 2003. He can be
reached through his website at www.magicwandco.com.
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