Looking to lease or finance?
By Taf Baig
From the February 2005 edition of Cleanfax magazine.
Elite Cleaning and restoration! The last two years have been excellent for businesses, investing in new equipment, thanks to recent tax cuts. Three years ago, estimates show 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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