Fixed assets are as much a part of any business as overhead and revenue. Almost every single business owns fixed assets in one form or another. What many entrepreneurs do not know, is that fixed assets have hidden potential, which can help with business growth.
What Are Fixed Assets?
Fixed assets are those items owned by business, which contribute to daily operations or generating revenue. Assets of this nature include real estate, equipment, vehicles, receivables, inventory, and more. It must be stressed that a fixed asset must be owned by a business. If facilities and equipment are leased by the business, they do not fall into this category.
Many assets offer tax benefits to business owners. Improvements made to owned real estate and facilities, for instance, can be deducted when filing taxes. Similarly, business owners can deduct the depreciation of owned business equipment, as well as the mileage on company vehicles.
Acquiring Business Assets
Because the aforementioned assets are so integral to every business, there are numerous financing programs available to help entrepreneurs to acquire the items they need. There are SBA loans designed to help business owners purchase fixed assets. Equipment financing programs help businesses get the machinery, tools, vehicles, computers, and even furniture they need for their daily operations.
The Hidden Value Of Assets
Every fixed asset has a hidden value. Through asset based lending, the value of fixed assets can be used to structure a revolving line of credit. Asset based lending provides an alternative to traditional loans, which allows businesses to grow and flourish without taking on unnecessary debt or compromising credit ratings.
When a business acquires more fixed assets, such as larger facilities, new equipment, or sees an increased number of sales, asset based financing also improves. Another analysis of the business can be performed to increase the amount of available financing. Asset based financing is one of the few funding programs designed to promote growth for businesses of all sizes.
Leverage Your Fixed Assets Today
If our business could benefit from a debt-free financing solution that grows with your business, contact Vortex Funding. We specialize in working capital solutions for businesses across all industries. Whether you are a well-established corporation, or if you are just starting out with a few fixed assets, our team will work with you to unlock value of your assets and get you the financing you need.