In business, you have sometimes to go with the flow. Although you are well prepared and calculated with a solid business plan, there are sometimes cases where you need to spend more. Did you add a few additional employees and you need a few more desks? Did you get a big contract that will require a few additional truck to be finished on time?
Before you run to the local dealer to make it happen quick, here are a few options that may save you some much-needed cash.
Or last year’s model. Reconditioned machinery or refurbished computer may be enough at a considerably lesser cost. Most places provide some kind of warranty or guarantee if something goes wrong.
Buy from the government
You’d be surprised how much the government wants to get rid of equipment it owns either from surplus, after a slight use, or confiscated by law enforcement. There might be some steps you have to go through. Each agency (Federal, State) has different rules. Some require you to appear in person and have the cash at hand. Other sales can be conducted online. Here are some sites you might want to check:
https://www.govdeals.com/ lists items by category.
http://www.governmentauctions.org/aNoFeeAuctionsByState.asp to find an auction location near you.
https://www.usa.gov/buy-from-government General information about government sites and auctions.
Barter is the oldest form of trade. It is estimated that 65% of Fortune 500 companies do barter – exchanging goods for services. You can make a deal directly with another company or you can use barter exchange where you offer your goods in exchange for credit toward things you need. You can find information about the exchange here.
The main advantage of bartering is the positive effect it has on your cash flow. It is also a good venue through which you can get rid of equipment you don’t need anymore.
Leasing equipment; from desks and laptops to trucks and heavy machinery is the only way to get up-to-date equipment and still have cash in your coffers. Leasing usually doesn’t require a big down payment, and the monthly payments are set and known. If you need the newest equipment and are short on cash, leasing is the best way to go. Some companies lease to individuals or small businesses less with less than stellar credit.
At the end of the day, you have to consider 3 things: quality, the time it takes to produce your product, and how expensive it is. The going wisdom says you can have only 2 of the 3 when you are short on cash.