Building and preserving business credit ratings can be a challenge, especially if you are seeking additional funding. However, there is a way to get the working capital you need without…
Fixed asset management should be a concern for all growing businesses. Acquiring and keeping track of fixed assets can quickly spiral out of control, which is why we have put together a list of tips to help growth-focused entrepreneurs.
Start Fixed Asset Management As Soon As Possible
Every business needs to employ fixed asset management. Whether you are tracking inventory, receivables, computer workstations, vehicles in use, or equipment, having a system in place is vital. Be sure to use an agile system that allows for removing duplicate entries, and resolutions for missing assets, or items no longer in use.
Depreciation Plays A Key Role
Fixed assets depreciate, and will directly affect certain processes, such as filling taxes. After a certain time, fixed assets depreciate to a point where they no longer provide a return on investment, according to the IRS. Additionally, depreciation indicated when older fixed assets need to be replaced with newer models. Items such as computers, for instance, should be upgraded or replaced every three years.
Always Purchase Assets With The Future In Mind
When purchasing fixed assets, many businesses tend to thing of interim needs. Because of depreciation, and general wear and tear, businesses should purchase assets that will still be viable a few years down the road. Fixed asset management cab cost time and money if you are tracking equipment that is constantly breaking down, getting replaced, or worse, is of not use to the business and just collects dust.
Leveraging Fixed Assets For Growth
In addition to general fixed asset management, growth-focused businesses can tap into the value of assets to create a source of capital. Fixed assets can be used to create a revolving line of credit, which gives growing businesses the capital they need without having to rely on loans or high-cost cash advances. The capital has no restrictions, and can be used to finance everything from large purchases, mergers and buyouts, and even acquiring more fixed assets. As your business acquires more equipment, increases inventory, and more, the limits on the line of credit will also increase. And being able to get debt-free funding is certainly an incentive to implement a system for fixed asset management.
Learn More About The Hidden Value Of Your Fixed Assets
At CNH Finance, we specialize in providing working capital solutions through fixed asset management. Contact our offices today to learn more about how your assets can be used to provide the growth capital you need.