Benefits of Food Truck Ownership

Food Truck Ownership Benefits
Food Truck Ownership Benefits

Benefits of Food Truck Ownership

Owning a food truck can be an incredibly rewarding and diverse venture. Not only does it allow you to run your own business, but it also lets you craft unique culinary experiences for your customers. Gone are the days when food trucks were merely considered greasy spoons; today, many food trucks offer gourmet dining experiences. As a chef and culinary artist, you have the opportunity to create dishes that keep customers eagerly anticipating your arrival. Moreover, food trucks are frequently hired for major events, such as wedding receptions, parties, and other gatherings.

Financing the Purchase of a Food Truck

Typically, to secure financing for a food truck purchase, you need to have been in business for at least two years. However, if you have a steady income stream from a related culinary business, you may still qualify for financing to start your food truck venture. Additionally, having good credit is crucial, especially if your business is less than two years old.

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Bonus Depreciation is About to Phase Down to 80% in 2023

Bonus Depreciation is About to Phase Down to 80% in 2023

In 2022, IRS Section 179 has a deduction limit of $1,080,00 for equipment and off-the-shelf software, with a spending cap of $2,700,000. After the spending cap of $2,700,000, a purchaser can take Bonus Depreciation of 100%. Starting in 2023, Bonus Depreciation will be reduced from 100% of the purchase price in the first year to 80% of the purchase price. Each year after that, Bonus Depreciation will be reduced by 20% until it reaches $0.

In 2023, the IRS Section 179 deduction limit will be $1,160,000 and the spending cap will be $2,890,000. Any Bonus Depreciation taken after the spending cap of $2,890,000 will only be 80% instead of the 100% allowed in 2022.

2022 is the last year to get the 100% Bonus Depreciation. If you want to purchase equipment or expensive software, such as ERP, CRM or HR software by the end of 2022 to take advantage of Bonus Depreciation, and don’t have the cash flow, financing from Dimension Funding can make it happen. It’ll be tight but it’s doable. Fill out our online application and one of our financing gurus will reach out to you.

Have a wonderful holiday season!

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Tax Benefits of Buying Equipment & Software Before December 31, 2022

Tax Benefits of Purchasing Equipment Before the End of 2022
Tax Benefits of Purchasing Equipment Before the End of 2022

Tax Benefits of Buying Equipment & Software Before December 31, 2022

It’s almost the end of the year 2022 and the start of a new year.  Your company will want to take stock of potential tax write-offs available to your company before the year ends. One of those tax write-offs is under IRS Section 179 which allows you to write-off up to $1,080,000 for equipment or software and thereby reduce your tax liability.

It’s an opportunity to reduce your taxes while getting essential equipment for your business. You can start the new year by upgrading your business assets or expanding to increase your business while reducing your overall tax liability for 2022.

Check with your accountant or tax professional to see what tax write-offs are available to you. Depending upon your top tax bracket, you could write off a substantial portion of the purchase price of new equipment or software.

Section 179 Tax Write-Offs

The tax write-off under IRS Section 179 applies to most types of business software and equipment including:

This list is not exhaustive. Pretty much any business asset is covered under IRS Section 179. There are some exceptions of course but IRS Section 179 is pretty expansive. This tax benefit was designed to help small and medium-sized businesses to invest in themselves and to succeed.

Take advantage of it before December 31, 2022 if you want the tax benefits.

If you don’t want to impact your cash flow, you can finance the software or equipment purchase with a financing company such as Dimension Funding. You make monthly payments over the lifetime of the asset, generally up to 60 months. As an added bonus, you may qualify for a 90 days deferment before you have to make your first monthly payment. Your new equipment can be earning you money for 90 days before you make your first monthly payment. With the tax write-off, it might be a good idea to purchase any needed business equipment or software before January 1, 2023.

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How the Inflation Reduction Act Impacts your Business and You and your Family

Inflation Reduction Act
Inflation Reduction Act

How the Inflation Reduction Act Impacts your Business and You and your Family

You may be wondering how the Inflation Reduction Act (IRA) is going to impact you and your business. Are the tax provisions going to impact your business? What provisions are available to benefit your business or you personally?

The Minimum 15% Tax on Businesses

You’ve heard that there is a minimum 15% business tax for companies that pay little or no taxes. However, it only impacts behemoths like Amazon, Nike, FedEx, HP and Salesforce. Small- or medium-sized businesses are not affected. 

ACA Subsidies Extended

The extension of ACA healthcare subsidies until 2025 will help in that the employees of small businesses will be able to afford health insurance. For many small businesses, providing health insurance to its employees is a major expense. Having ACA subsidies means that your employees can get health insurance even if you aren’t able to offer it.

The Inflation Reduction Act’s Impact on Homeowners

A major part of the IRA is moving to clean energy sources and using less energy to provide the same benefits.

Renewal Energy for Homes

Renewal Energy is a big one with a big impact on clean energy producers and green home remodeling companies. Consumers can get the following rebates starting this year:

  • Up to $1,750 for a heat pump water heater
  • $8,000 for a heat pump for space heating or cooling
  • $840 for an electric stove or an electric heat pump clothes dryer
  • $4,000 for a breaker box upgrade
  • $1,600 for insulation, air sealing and ventilation
  • $2,500 for electric wiring

Green remodeling will jump from a one-time $500 tax credit to an annual $1,200 / year. Many homeowners who previously couldn’t afford to “green” their home energy production will be incentivized to do so. Companies who offer these “green” services will see demand skyrocket with these incentives offered for the next 10 years. Not only will this reduce our carbon footprint, but it will reduce costs on the average household by $170 to $220 a year in electricity costs.

Tax Credits for Solar Panels

Homeowners can combine the tax credit of up to 30% for solar panels with battery systems that allow homeowners to store excess energy. This tax break for batteries starts in 2023.

Rebates for Reducing Home Energy Usage

Homeowners could get up to 50% of the cost of efficiency retrofits such as insulation and HVAC installations up to a dollar cap of up to $8,000.

Tax Credits for Electric Vehicles

The Inflation Reduction Act’s vehicle tax credits for new ($7,500) or used ($4,000) EVs is aimed at low and middle income buyers and excludes luxury EVs that sell for more than $55k or a truck or SUV that sells for more than $80k. This is a mixed bag since the downside is that the critical minerals needed to make EV batteries must come from North America or our free trade partners which eliminates quite a few EVs. However, there are still quite a few EVs left that can be purchased.

Also, there are income requirements for the $4,000 tax credits for used EVs. If you are single, your AGI can’t exceed $75,000; a married couple’s AGI can’t exceed $150,000 to get the tax credit for used EVs.

Medicare Negotiation

The IRA also allows Medicare to negotiate drug prices. That will bring down costs of many drugs. In particular, the cost of insulin will be capped at $35 / month starting next year. It will also cap the total amount that people on Medicare pay for prescriptions to $2,000 per year.  If you are on Medicare, this could mean big savings for you.

The Inflation Reduction Act’s Impact on your Business

Electric Vehicles for your Business

With incentives to purchase EVs it might make sense as a business to invest in EVs rather than gas-powered vehicles. There are commercial energy tax credits available in the Inflation Reduction Act for many small businesses.

R&D Tax Credit

The IRA also doubles the maximum R&D Tax Credit that can be applied against payroll taxes. It is up to $500k from $250k. The concept of R&D is a very loose one and you could qualify. Check with your accountant or tax attorney.

Creation of Businesses

According to the head of investment at Bill Gates’ Breakthrough Energy Ventures, between 300 and 1,000 new companies might be created om the climate space. Depending upon the business you are in, this might provide you with more customers for your products or services. It could also provide you with more energy efficient products in the future.

Conclusion

There is no doubt that this is a transformative bill, particularly in the area of climate change. It is estimated that the IRA could slash US emissions by 41% by 2030. You and your company can take advantage of the IRA’s provisions to move to cleaner and less expensive energy. Since energy costs are large part of inflation, it should also bring down inflation, which will benefit businesses and consumers.  It will reduce our dependence on foreign oil and help to reduce our carbon emissions.

You can make your business more energy efficient. You can also make your home more energy efficient. All with rebates and tax breaks to help you do so. It’s a win win. As always, we are available to finance your eligible business purchases.

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Recession? What Recession?

Visual of Thriving During a Recession
Visual of Thriving During a Recession

Recession? What Recession?

Steps to Prepare your Business for an Economic Downturn

Is there going to be a recession in the next 12 months? Are we in a recession now? Experts offer conflicting views. Fed Chair Jerome Powell says “he doesn’t think the U.S. is currently in a recession. … There are too many areas of the economy that are performing too well.”

Ellen Zentner at Morgan Stanley says, “the probability of a recession in the next 12 months is about 30 percent, according to the bank’s models.” Bank of America and S&P Global Ratings puts the probability of a recession at 40%.

Then there’s the discussion of what constitutes a recession. Experts are divided on this as well. However, as a business, you know when your business earnings start to drop. No matter how an economic downturn is labeled, if it impacts your bottom line, you need to take action.

Here are some ideas on how prepare for and thrive during an economic recession or downturn:

Have a Financial Plan

Don’t wait until you are in the middle of a recession to put together a plan. Put together a company plan now. It will help with guidance on how to successfully navigate the recession and keep the company from having a knee jerk reaction and possibly costing the company long term.

Emergency Fund

If you are an individual, you are urged by financial gurus to have an emergency fund. It’s good advice for businesses too to have enough working capital on hand to weather any economic downturns. Have enough cash on hand to handle anything that arises during a downturn.

Cut Out Unnecessary Costs / Numbers Don’t Lie

Take a long look at your budget. Are there expenses that aren’t bringing in an ROI or you know just aren’t working. Cut them from your budget. Even small items can add up. Take a look at the corporate credit cards. What expenses can you prune? It’s amazing how many items get paid for and then either never used, or used and then forgotten about.

Cut back on discretionary spending such as travel, high-cost lunches, etc., unless the spending is related to ROI. Obviously, if trade shows bring in business, you would not want to cut back on those. But a lot of your discretionary spending can be pruned.

Don’t preemptively cut staff. In past recessions, companies that reduced their staffs because of a recession took years to come back because of the loss of key company and business knowledge. Instead, use this as an opportunity to update and train your staff. Studies have shown that companies that invested in themselves and their employees recovered quickly after a recession. Also, the pandemic changed employers’ recession strategy. Because so many employees never went back to their pre-pandemic jobs, employers want to hold onto good employees. It’s easier to keep good employees than to find them.

In HBR’s, “Roaring Out of Recession,” companies that had “layoffs may reduce costs quickly, they make recovery more difficult. Companies run the risk of scaling up too late, especially if hiring is more difficult than they anticipated. People are loath to work for organizations that reduce head count in difficult times. Moreover, as these companies rehire, costs shoot up.”

In Roaring Out Recession, it states, “The CEOs of pragmatic companies recognize that cost cutting is necessary to survive a recession, that investment is equally essential to spur growth, and that they must manage both at the same time if their companies are to emerge as post-recession leaders.”

Keep investing in your Business / Prepare for the Bounce Back

Companies that continue to invest in marketing and advertising come back faster from a recession. Recessions are a good time to update your technology, train your staff, etc. Many types of technology, such as ERP Systems, IT Systems, etc., reduce your costs and increase efficiency. By investing in technology before or during a recession, you can use technology to reduce your overall corporate costs.

Finance Large Purchases Over Many Years

Instead of reducing your working capital, finance large purchases for up to 5 years. While recessions can last this long, it’s highly unlikely that any 2022 recession would still be ongoing in 5 years because of the causes of this potential recession and the low unemployment numbers.

Focus on Long Term Goals

Think long term. Knee jerk reactions can cost your business money and personnel in the long run. See past this quarter or even this year. Plan for the future. What you do today can have a big impact for many years to come.

Look for creative ways to increase sales

If your company is hit particularly hard by a recession, look for creative ways to make more money. Tap the resources in your company to possibly expand your product offering or to creatively reposition your products to meet the moment.

Keep in contact with your customers

It’s easy to become cocooned during a recession. Instead, stay in touch with your customers. Maintain good relationships even if they can’t afford to purchase from you at this time. Reach out just to check in. They will remember who stood with them when they were experiencing problems.

Upshot

We are getting plenty of warning of a potentially upcoming recession. It’s really important to take steps now in order to be prepared.

If you are contemplating the purchase of big ticket items and want to save your working capital, we offer equipment financing, technology / IT financing, including software financing. Instead of a large outlay of cash, make fixed monthly payments over the lifetime of the asset up to 60 months. The Fed is likely to raise rates again in September so finance now before rates increase.

If you are an equipment, technology or software vendor, offering financing to your customers can allow them to purchase assets they need for their business while making low monthly payments. You get paid upfront. It reduces the impact of any economic downturn on your business because your customers can afford your products, even during a recession.

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Dimension Funding Has Paperless Financing

Paperless Office for Financing Company
Paperless Office for Financing Company

Dimension Funding Has Paperless Financing

A Fast & Easy Electronic Financing Process

As a business looking for a way to increase efficiency and ease of use, Dimension Funding has a paperless financing system. We offer an online financing application and process. When it comes time to sign the documents, all of the documents are digital and signed through DocuSign. This makes the process more secure and fast & easy.

Because all of the documents are digital, vendors and borrowers have quick and easy access to appropriate documents.

Obviously there are some exceptions to the “paperless” rule since every financing situation is different. But our primary financing process is entirely electronic.

Environmental and Corporate Benefits of Going Paperless

In addition to the benefit to our customers and vendor partners, there are environmental and corporate benefits to going electronic as well.

On average, each person in the US uses 500+ pounds of paper with 40% of the world’s industrial logging focused on paper production. That’s an incredible amount of paper being generated that much of which can be replaced by electronic documents.

According to the Paperless Project, the cost to maintain a filing cabinet per year is roughly around $1,500 with an average cost to file a document of $20, $125 per misfiled document, and $350 for every lost document.

Our carbon footprint is decreased because we are no longer using reams of paper, filing cabinets, etc. In addition, documents are readily accessible. No more looking for a misfiled document.

Not only does it help the planet to go electronic, but it can save companies a substantial amount of money from not wasting time creating, shuffling and attempting to find papers.

An IDC Survey showed “that information workers waste a significant amount of time each week dealing with a variety of challenges related to working with documents. This wasted time costs the organization $19,732 per information worker per year and amounts to a loss of 21.3% in the organization’s total productivity.”

While Dimension Funding went to paperless financing for the convenience of our customers and to help the environment, a great side benefit was an increase in productivity. It’s a win-win for our clients, the environment and for the productivity of our organization.

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Benefits of a Vendor Financing Program

Benefits of a Vendor Partner Program

Benefits of a Vendor Financing Program

How a Vendor Financing Program helps both the Vendor and their Customers.

Vendors and customers alike can benefit from a vendor financing option. Depending upon the vendor financing program, there are many benefits to offering financing to your customers.

Types of Vendors who can Benefit from having a Vendor Financing Partner

  • Equipment companies. Any type of equipment, particularly large ticket items such as construction equipment, lab equipment, business cargo trucks, security equipment, etc.
  • Subscription software such as ERP or CRM software. Any type of software can be financed over the term of the subscription turning a large upfront cost into monthly payments. In addition, training, implementation and hardware costs can be rolled into the financing as well.
  • Industrial Automation Equipment Providers.
  • Breweries, wineries and brewery equipment companies.
  • Point of Sale companies.
  • Almost any type of manufacturer.

Why Financing Can Help Customers

  • Customers don’t need to find financing on their own. This can reduce the time it takes for a customer to make a purchasing decision. It can also induce a customer to purchase by spreading paying for the equipment or software over the lifetime of the asset.
  • Soft costs, such as delivery and installation for equipment, and training and implementation for software, can also be included in the financing turning large upfront costs into monthly payment.
  • The associated soft costs, particularly for software subscriptions such as ERP implementations, can be much more than the cost of the software itself. By being able to finance it along with the software, it makes it easier for the customer to be able to afford an ERP solution.
  • Financing, especially for small and medium-sized enterprises, means that they can afford equipment to expand, or software for streamlining or organization because it reduces the impact on their cash flow. By having a fixed, monthly payment rather than a large upfront cost, a small business can afford equipment and software that they otherwise might have been able to purchase.

Why Financing Can Help Vendors

  • Providing financing is expected by your customers. It can be a part of your overall marketing strategy.
  • It speeds up the closing of the sale. Because customers don’t need to search for financing but can get it within a day or so of applying, vendors are more likely to close the sale.
  • You are offering more than just a product. You are offering a service and a comprehensive approach to your customers. Vendors who offer a personalized, comprehensive service to their customers are more valued by customers and generate more sales.

Selecting the Right Financing Partner

It’s not just that the financing partner provides financing. A financing partner can be a true partner to a vendor and help to generate sales. A true partner with a comprehensive vendor financing program can help a vendor by:

  • Providing co-branded flyers and print materials that explains financing options and the benefits of financing. These flyers can contain the vendors product information and financing options for their services.
  • Setting up online applications and landing pages which gives the customer a quick and easy way to apply for financing, explains any promotions and helps with converting a prospect to a customer.
  • Provides an app, a “Financing Widget,” that the vendor can install on their website that quickly and easily puts a financing application & a payment calculator on the vendor website. It also provides information on financing options which allows the customer to apply for financing even before they contact the vendor.
  • Maintains good communications with the vendor and helps with responding to changes in the vendor’s landscape.

The pandemic significantly upended many companies’ landscapes. By having a vendor financing partner, companies were able to weather the changes, increase sales and improve relationships with their customers.

Having a vendor partner such as Dimension Funding, who is responsive and actively works with a vendor to help close sales, can positively impact the bottom line of the vendor, give a better experience for the customer and generally improve the purchasing experience.

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4 Improvements That Will Modernize the HR Software Industry

HR Software Innovations
HR Software Innovations

4 Improvements That Will Modernize the HR Software Industry

Companies from all walks of life and every corner of the globe are starting to realize the fact that the people who work for them are their most important asset. Workplace behavior specialists like Simon Sinek have been advocating labor force optimization for years and the fruits of their labor are starting to finally get realized.

With companies pouring money and resources into their Human Resource departments, the demand for specialized software has skyrocketed. As an HR software manufacturer, being cognizant of the changes taking place or the general trajectory is incredibly important if you want to thrive in an increasingly competitive niche.

In this article, we’ll elaborate on 4 ways the industry is changing and their outcomes. Some of these ways might be predictable, others might be newer developments but all of them will inevitably dictate how well you stack up against competitors, in 2021 and beyond.

The Direction the Industry Is Heading In

HR software can basically be divided into core functionality and service-based programs. Core functionality includes recruitment, maintenance, talent management, workforce planning, analytics, etc. An emphasis on service would include training and consulting, support and maintenance, implantation, integration, etc.

It’s important to understand this distinction as we dive into the 4 ways the HR software industry is progressing in 2021:

1. Hiring Optimization

Most people assume that the HR department only deals with managing employee concerns and making sure compliance is regulated. A lot of the specialized software being developed is optimized for these processes alone. However, a hugely important aspect of HR management is hiring new talent.

As most applications for jobs are submitted online either through email or the company website, ATS software has become essential. The incredible expansion companies are doing and the number of new businesses opening will make this importance even more absolute.

ATS software helps categorize applicants according to their information. The software currently available does the job well, but there are definitely improvements that can be made on all fronts.

For one thing, more sophisticated search algorithms should be developed to ensure that no good applicant is filtered out for no reason. Another aspect that companies are interested in improving is the management of filtered applicants with a ranking system or more streamlined categories. This will make the manager’s jobs much easier.

The competition for this particular aspect of HR software is still relatively low so specializing here and making intuitive upgrades could prove to be a game-changer over the course of the next few years.

2. Artificial Intelligence

No list on the future of any industry would be complete without mentioning Artificial Intelligence in some capacity. Some fear it, some revere it, but everyone agrees that AI will undoubtedly help push humankind into the future. And this includes the HR department of course.

The potential of AI assisting in the various aspects of Human Resource management is very promising, especially in the recruitment process. This ties into our previous point of specialized software integrated with AI helping managers make better hiring decisions. The machine could analyze applicants and check their qualifications and past experiences to give a ranking order for example.

Another big advantage of AI that experts stand by is its ability to streamline redundant, time-intensive tasks. These tasks might involve surveys or questionnaires and having to pour over hundreds of them might not be possible for several people let alone one.

Advanced AI systems could, in theory, analyze the documents efficiently and discard the empty ones. Or maybe it could search for certain keywords like “unsatisfactory” or “disappointed” to pinpoint the most pressing problems.

Obviously, the technology isn’t good enough at this point in time to make 100% foolproof decisions. We’re still several years away from that being a reality. But the advancements taking place are certainly promising and implementing AI will for sure be a huge advantage if not a necessity in the future.

3. Specialized Training

One advancement that isn’t necessarily software-based is the specialized training that is required to run these advanced systems. This is a neglected aspect of the industry at this point.

If you compare the HR software industry to something like the manufacturing industry, a big difference is the fact that many of the companies making the machines have specialized training programs for their customers to take full advantage of their products.

As HR software continues to advance, the need for specialized training will rise with it. This could range anywhere from simple video tutorials to full weekend-long workshops to teach managers and their teams how to utilize the software to its full potential.

This will slowly become an industry standard and not including it along with your bundled software would be a big disadvantage. Many companies have started working on their training curriculum and their competitors in the niche should look into taking the next step themselves.

4. Confidentiality

Data confidentiality is incredibly important. As more and more data privacy laws are enacted, the calls for companies to respect their employee’s information are loud and will continue to grow louder.

The HR department is unique in the sense that it has tabs on every worker in the company. This simply comes with the territory and having to keep track of this information is a part of the department’s job. Sensitive information like their health problems, contact details, addresses, social security numbers, etc. are all regulated within HR software.

The responsibility of the people making the software has therefore increased too. Better encryption, more secure servers, more transparent terms are going to become industry standards very quickly. Other features that many companies have begun offering include secure file storage solutions, CSRF protection, automatic data backups, cryptographic password protection, and much more.

These features give the HR managers confidence in your service and make it easy for them to guarantee that their employee’s data, and welfare, is in good hands.

Financing for HR Software Solutions

There are many other trends that are revolutionizing the HR software industry but the ones we’ve mentioned above are the most relevant and the most influential. Understanding this importance will enable you to add them to your service or update their usefulness for everyone involved. The future of your business could quite literally depend on it.

Many HR Solutions can have expensive upfront costs including the software, implementation and training. Dimension offers financing to turn the entire HR Solution project into monthly payments over the term of the subscription.  HR software financing is a great way of making a large HR Software project affordable. 

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The Best Way to Finance External Power Sources

Financing Power Generators
Financing Power Generators

The Best Way to Finance External Power Sources

Almost everything we do runs on some sort of electrical power. This is true for our home appliances, and is especially true for businesses, both large and small.

When deciding what equipment will benefit them in their day-to-day operations, most business owners don’t consider power sources as a strong contender, but not investing in this area could prove to be a big mistake.

In this article, we’ll go through why having a dependable power source is so important in our day and age, we’ll take you through the different options at your disposal, and we’ll show you how privately financing generators and other power sources is probably the best choice.

Why External Power Sources Are Important

To be clear, we’re talking about external privately-owned power sources, not government-provided ones. The type of business you’re running has a big impact on the necessity of having a power source in the first place, but almost all businesses will benefit from its implementation for the following reasons:

1. Power Outages

The biggest and most obvious reason for investing in an external power source like a generator is for cases like power outages or breakdowns. This might seem like a non-issue in developed countries like the US, but it happens a lot more frequently than you might think.

Areas that suffer from bad weather are severely affected by this. Louisiana, as an example, suffered from almost 181 million outage hours in 2020. That’s a lot of time and money wasted. Having a backup power reserve will offer a short-term solution to this.

Your work will not have to come to a standstill and your equipment will still be able to keep working.

2. Power Fluctuations

Besides outages, electricity also fluctuates very frequently. This is a big problem, especially for manufacturers. Machines and robots operate best at specific wattages and fluctuations make inefficient circumstances for large-scale production to take place.

Over time, these conditions can damage your equipment or could result in a short circuit or malfunction. The best way to combat this is to have specialized equipment designed to keep your machines running at the input they perform their best at.

3. Security

We’ve already discussed how power outages can create problems for businesses, and a big one is the compromised security of your workplace.

Power outages offer the perfect conditions for thieves to operate in. Having at least your lighting and security system connected to a backup generator will do wonders in warding off people who want to harm your business in any way.

4. Services Keep Running

This is a vital point for businesses like Wireless internet service providers.

It is essential that servers or transmission dishes keep operating in all circumstances, so having these hooked up to an external power source is a necessity for corporations in this niche. Not doing so could result in a decline in your customer satisfaction and could damage your expensive equipment.

Your data is also secured when you implement an external power source. Computers shutting off unexpectedly could result in you losing precious information in an instant.

Types of Power Sources

Now that we’ve gotten an overview of the benefits of having an external power source, let’s look at some of the options at your disposal:

Generators

The most common choice for an external power source is a generator. They have the most utility and can (and should) be used by almost everyone.

The type of generator that would be useful for businesses is a standby generator for the following reasons:

  • Operates automatically
    ● Offers permanent power protection
  • Can use many fuel types
  • Can boot up in seconds minimizing power loss duration
  • Always monitors utility power
  • Best used in systems like elevators, lighting, medical equipment, server protection, and emergency fire systems.

Renewable Energy Sources

A newly emerging segment of power sources is entirely focused on generating electricity through renewable sources of energy like solar, wind, water, etc.

The most commonly available and successful form of renewable energy at the moment is solar which is what we’ll focus on right now. Solar panels work in the same way as generators but with some key advantages:

  • Unlike generators, solar uses the sun to generate electricity. This saves fossil fuel usage and reduces your business’s dependence on these scarce resources.
  • Solar greatly reduces electricity costs. This is because the system cuts down your reliance on the grid, helping you save massively in monthly electricity bills. As power is one of the biggest fixed costs businesses face, dramatically reducing it could prove to be a huge advantage.
  • A greener public image. How people perceive your business and work is incredibly important in today’s business climate and committing to renewable energy sources like solar will help boost that.
  • Solar energy future proofs your business. In the future, almost all businesses will have to adapt to renewable sources of energy to operate on as our fossil fuel supplies are dwindling fast.

How to Finance to Industrial Generators and Solar

The cost of implementing alternative power sources into your workflow varies significantly and could be as little as buying a small portable generator to a several hundred-thousand-dollar overhaul.

Regardless of the actual financial weight of your decision, you have two main options for financing it. Either by taking a bank loan or through private financing companies like Dimension Funding.

Bank loans are hard to get, difficult to pay off, and can be a classic case of biting off more than you can chew.

Private financing on the other hand is a much quicker, safer, cheaper, and more reliable way to get your power source financed. Here’s why:

  • Fixed monthly payments. You don’t have to worry about fluctuating interest rates or calculating how much you have to pay each month. Private financing lets you choose a low monthly payment for up to 60 months. You know exactly how much you have to pay and the agreed amount during the signup process never changes.
  • Finance up to $250k without financial documents. An application-only option allows you to purchase the external power source solution you need quickly. There are no lengthy application processes or reviews and if you need more than $250k then all you need to do is provide your financial statements.
  • Finance 100% of the costs. Just buying the equipment isn’t the end. You have to set it up, train your staff to use it, make room for maintenance costs, etc. Private financing companies like Dimension Funding take care of everything for you. All these costs are taken into account and are included in your principal amount.

We hope this article has helped you better understand the benefits of having an alternative power source and how it can streamline your workflow and prevent unpleasant surprises, in the present and in the future.

If you’re interested in financing your external power source solution through a third-party vendor, be sure to contact Dimension Funding. You’re only an online application and a quick approval process away from getting a time-tested, hassle-free, and convenient financing option for your next equipment upgrade.

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Everything You Need to Know about Buying Commercial Vehicles Under IRS Section 179 in 2021

Purchasing Commercial Trucks Under IRS Section 179
Purchasing Commercial Trucks Under IRS Section 179

Everything You Need to Know about Buying Commercial Vehicles Under IRS Section 179 in 2021

Investing in your business’s operations and workflow is an essential step to progressing in the ever-increasing competition of the current corporate climate. Small changes add up and could mean the difference between you winning customers over or losing them to your better-equipped competitors.

Acquiring equipment, including commercial trucks, is essential for this very reason. It helps you produce more efficiently, deliver more widely, and ultimately enhances every aspect of your business model. The problem is the cost. Most equipment, especially commercial vehicles, is prohibitively expensive. Most small businesses may find it very difficult to justify this type of expense, but fortunately, there is a silver lining.

In this article, we’ll tell you about the 2021 Section 179 tax deductions, we’ll tell you how your next vehicular upgrade can benefit from this, and we’ll give you some commercial truck financing options you may not have considered.

IRS Section 179 Tax Deductions Explained

Before we get into vehicle acquisition itself, we have to understand the 2021 Section 179 tax deduction and how it can benefit you.

In a nutshell, Section 179 of the Internal Revenue Code gives you the opportunity to deduct the cost of approved equipment as a business expense during the tax year. You can essentially absorb the purchase price of said equipment into your business’s overall expenses.

This is useful for small organizations especially as they can upgrade their equipment or purchase new capital to produce better products and offer a higher quality of service to their consumers, without the heavy investment costs that would plague them otherwise.

This is beneficial to the business and the economy, as more commercial activity is a hallmark of a healthy, thriving country. Amidst a global pandemic, any help the economy and businesses can get is definitely a positive

Who Qualifies for IRS Section 179?

Basically, any business that purchases approved equipment for its day-to-day operations can qualify for this tax credit. There are no restrictions on the type of company that can receive the credit and their size is also irrelevant. There are however certain spending and deduction limits. They are as follows:

  • $1,050,000 deduction limit for 2021
  • $2,620,000 spending limit for 2021

Besides the spending and deduction limits, the equipment you’re purchasing has to fall into one of the following categories:

  • Hardware (robots, machinery, computers)
  • Furniture
  • Off the shelf software
  • Vehicles intended for commercial use (shuttle vans, trailers, cargo trucks, etc.)
  • Property that does not affect the building’s integrity
  • Certain renovations (roofing, alarms, fire systems, etc.)
  • Any property that is not intended for personal ownership

Another requirement is that the vehicle or equipment being purchased has to be put to use before midnight of December 31st, 2021 for the tax deductions to take effect.

What Commercial Vehicles Can Be Purchased Under Section 179

To keep it as simple as possible, every vehicle can be written off 100% through IRS Section 179 tax deductions if it falls into one or more of the following categories:

  • The vehicle has more than nine passenger seats that can be used.
  • The vehicle has no seating behind the driver. An example of this would be a cargo van or a moving truck.
  • The vehicle is used for heavy construction work. An example of this would be a forklift or concrete transport truck.
  • The vehicle is an over-the-road semi. This includes “big rigs” truck and trailers.
  • The vehicle is intended to be used as an ambulance.
  • The vehicle is intended to be used as a hearse.
  • The vehicle is intended to be used as a shuttle.
  • The vehicle is a modified version of a van.

If the type of commercial vehicle you’re eyeing passes this test, then you can effectively take advantage of the full depreciation deduction for 2021. If it doesn’t then you can still get it but you won’t get a full deduction on the money you spend so it may not be the best financial decision for you and your business. This varies on a case-by-case basis so it depends though.

Consult a tax professional to be sure you qualify for any tax write-offs. This article is not intended to be professional tax advice.

Used Commercial Vehicles Under IRS Section 179

Another question that comes up quite often is based on used commercial and vocational vehicles. Is it possible to buy them and still take advantage of the Section 179 tax deductions?

Yes, it is! The IRS defines their requirement as “new to you”. What this means is that as long as you haven’t purchased the commercial vehicle before and are not related to the seller, the deductions will still apply.

There are some caveats which we will elaborate on in the next section, but for the most part, buying used commercial vehicles shouldn’t be a problem at all.

Rules You Must Follow

Here are some things you need to keep in mind when buying vehicles and wanting to benefit from the IRS Section 179 tax deductions:

  • The vehicle should be used for qualified business usage at least 50% of the time. Commuting to and from work is NOT business usage.
  • The vehicle should be registered in the name of the business.
  • Full deductions may only be possible for vehicles that fulfill the requirements we’ve outlined in the previous sections.
  • The vehicle must be purchased and put to use by December 31st, 2021.
  • There are certain spending caps on vehicle types. SUVs, for example, have a limit of about $26,200 for the year 2021. “Heavy” SUVs have a more relaxed limit owing to the cost of acquisition. To qualify as “heavy”, it has to have a Gross Vehicle Weight Rating (GVWR) of more than 6000 pounds.
  • The amount of tax deductions you can make depends entirely on the amount you use the vehicle for EXCLUSIVE business purposes. Some vehicles by design will ONLY be used for work like forklifts and ambulances, but others live SUVs are more difficult to categorize. Technically, it’s a transport vehicle but getting 100% tax deductions may only be possible if you can confidently defend using it for your work only.

Keep all these things in mind when you decide which commercial vehicle to get for your business. The tax deductions have made the process easier than ever and with a plethora of financing options at your disposal, buying the vehicle in question is even simpler!

Using private financing companies like Dimension Funding to purchase your equipment or commercial vehicles allows you to take advantage of the IRS Section 179 deduction while also giving you the benefit of consistent monthly payments and an easy application process among others.

With a quick approval process and all your expenses taken into account, Dimension Funding offers a time-tested, hassle-free approach to securing your next vehicle upgrade. Apply online now to get started on your application.

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