Like it or not, your small business’ competitive advantage will be lost if you fail to maintain, service and repair your aluminum pipe fittings. Whether you are in the food and beverage, bio-medical or pharmaceutical industry, you must retain your competitive edge without hurting cash flow. Here four ways to finance your next purchase of pipe fittings that let your business grow without hurting its bottom line.
#1. Source The Best Deals Locally
Your current pipe fittings are worthless if you don’t invest in a regular cleaning and servicing program. By sourcing your aluminum pipe fittings from a local company you can be guaranteed of the lowest unit costs, swift delivery and expert insight into installation and maintenance methods. The best deals are to be found with companies that offer the broadest range of innovative fittings, based on long-term relationships with an extensive network of stainless steel tube mills.
#2. Hire-Purchase From The Suppliers
If your business can apply for a line of credit with the aluminum pipe fittings supplier, you can benefit from an interest-free, no-down, hire-purchase agreement and save serious money. These agreements are the ultimate in aluminum pipe fittings finance as they let you’ll own the fittings outright from day one and pay no administration fees. Buying your fittings in this way lets you expand your business and benefit from increased production while letting the new equipment effectively pay for itself.
#3. Leasing From A Financial Institution
If you can’t find a company offering an interest-free hire-purchase agreement for aluminum pipe fittings, your next option is to look to lease the fittings. With little or no down payment, leasing from a financial institution lets you expand your business with new fittings without hurting your cash flow. Leasing is a tax-efficient way of investing in your small business as you can create a pre-tax write-off of lease payments. At the end of the lease, you can buy the fittings from the lessor at their residual value.
#4. Supplier Credit
Many aluminum pipe fittings suppliers will provide credit for their customers depending on their credit history. If you can find a supplier willing to work with you, your business can acquire the necessary fittings without negatively affecting your cash flow. The most common version of this credit is Net 30 or Net 60 terms. This means that your business will not have to pay for the new fittings until 30 or 60 days after they were received. In many cases, two months is usually enough time to realize a substantial production rate benefit from the new parts to offset the investment. Upon prompt payment, the fittings supplier may provide discounts towards the amount owed.
Conclusion
Actively looking for one or more of these solutions is the best way for a small business to expand its equipment with new pipe fittings while minimizing the effect on cash flow. Sourcing the parts locally and looking to build relationships with reputable fittings suppliers are your best options for expanding your business.