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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Finance Software Training & Implementation Costs

Financing for Software Implementation & Training Costs
Financing for Software Implementation & Training Costs

Finance Software Training & Implementation Costs

Computer software has become an essential part of a modern business’s arsenal of tools. The increase in efficiency and the ability to implement new techniques is game-changing for almost everyone.

While many consumer-grade software packages are very affordable, professional corporate-grade software has a much steeper cost of entry. The costs don’t necessarily stop when you buy the software either.

In this article, we’ll go over why investing in high-quality software is a good plan of action, some hidden costs that you may not have considered, and how financing enterprise software through companies like Dimension Funding is a solution for all of this.

Benefits of Enterprise Software

Software is a very vague term as there are so many different types and permutations but for the most part, most businesses will use some form of specialized software, like Enterprise Resource Planning (ERP) or CRMs.

The benefits that you open yourself up to by choosing software like ERP, CRM or most types of enterprise software are immense:

  • Potentially reduced costs as software can effectively replace or support many different operations
  • Improved reporting and planning capabilities
  • Macro visibility (inventory management, schedules, etc.)
  • Improved efficiency
  • Data security
  • Easier departmental collaboration capabilities
  • Modular Scalability (software dependent)

Again, more specialized software created for a specific type of work will have even more to offer but these are general improvements almost anyone will see by implementing software into their workflow.

The Hidden Costs of Purchasing Enterprise Software

Now that we’ve had a brief overview of the benefits software can provide, let’s get into the associated costs. This will be software-dependent but for the most part, you will have to financially account for:

  1. Software acquisition costs
  2. Software implementation costs
  3. Software training costs
  4. Software maintenance costs
  5. Hardware costs
  6. Software Renewals

Let’s look at these in a little more detail:

1. Software Acquisition Costs

When we talk about acquiring software, many are annual subscriptions. Many software companies use this model to price their services and chances are that the software you’re looking for will require you to pay them a certain amount on an annual basis.

2. Software Implementation Costs

Advanced software is complex and difficult to set up so hiring a consulting firm to implement it on your company’s computers and devices is very important. Smooth implementation at the start will save you from a myriad of problems and headaches in the future.

3. Software Training Costs

When the software is set up, your staff will have to undergo training to get the most out of it. This is usually provided by the software makers themselves, but third-party trainers and weekend training camps are always an option you can rely on.

4. Software Maintenance Costs

Unlike other services or products, computer software is incredibly technical and needs constant updates and maintenance to run smoothly. There are bound to be, so companies need to ensure that they have the contacts to troubleshoot issues quickly.

5. Computer Hardware Costs

Some software might require special computers or peripherals to run efficiently. This can be a very steep cost as cutting-edge technology is not cheap, and depending on how current your devices are, your entire ecosystem might need to be replaced. For enterprise software, additional servers may be required.

6. Enterprise Software Renewals

You can also finance Enterprise Software Renewals , including implementation, training and hardware costs. You can turn the entire software renewal cost, including implementation, training and hardware, into fixed monthly payments. 

The Private Financing Solution for Software, Implementation, Training and Hardware

Private financing offers a solution to all this. Third-party vendors like Dimension Funding will help you finance your entire software subscription (or purchase if it’s a bespoke option) with easily manageable fixed monthly installments.

But what makes this a great option for businesses is the fact that you can easily finance all associated costs even after the beginning of your software subscription. Flexible financing allows you to continually add software-related costs to your principal as and when you need it up to the term of the subscription.

This is very helpful for several reasons chief amongst which is the peace of mind you have knowing that there won’t be any unpleasant surprises or costs waiting for you down the line. This helps you manage your finances better and can improve your business’s overall cash flow.

Some other advantages of privately financing software through Dimension Funding include but are not limited to:

  • Up to $500k in software financing with no financial documents required. (Over $500k does require financial documents.)
  • Hardware like computers, peripherals, servers, etc. can be included in your financing.
  • Annual subscriptions get turned into easy-to-pay and manageable fixed monthly installments.
  • Helps free up working capital for you to invest elsewhere.
  • Eligible on a wide range of software ranging from Microsoft to professional EHR, ERP, and CRM systems, HR and Accounting software, medical and EHR / EMR software and almost any type of subscription software.
  • Easy online application process with a quick turnaround time.

If you’re a third-party vendor selling software to customers, then all these benefits still apply. You’ll be able to offer them all these guarantees worry-free, and all the associated costs your clients face will be easily managed.

Making smart investments and getting positive ROIs on them is key for long-term business growth in all industries. Investing in high-quality software has the potential for incredible results, and with smart financing, you won’t have to spend an arm and a leg to get them either.

If you’re interested in learning more about financing your company’s software through a third-party vendor or if you’re a vendor wanting to offer financing to your clients for all the reasons we’ve outlined and more, be sure to contact Dimension Funding to get a head start on your approval process.

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Current State of Equipment & Software Industry After COVID 19

Software & Equipment Financing
Software & Equipment Financing

Current State of Equipment & Software Industry After COVID 19

To say that COVID-19 adversely affected the worldwide economy would be a gross understatement. The worldwide pandemic that started in the beginning of 2020 is still going strong and while the situation in many parts of the world is consistently getting better, we’re not out of the woods just yet.

Thankfully though, the US economy is recovering and as vaccination becomes more common, there seems to be hope for the future. In this article, we’ll analyze the effects of COVID 19 on equipment and software companies, the current state of the economy, and industry as a whole, and we’ll try to predict what the future holds. For 2021 and beyond.

Side Effects to Business Operations

Operating a business during a virus outbreak is a big problem for a number of reasons. For one thing, close contact between your employees has to be minimized while also ensuring that the work you’re doing continues at a respectable pace. Another obvious setback is the overall demand and supply of your product or service.

Uncertainty and fear kill demand faster than anything and unless your work fell into the essential category of things that would be used every day regardless, your business numbers undoubtedly suffered. This is especially true for the equipment and software purchasing industry.

The main customers of these services and products are usually construction companies, and medium-sized to large corporations looking to make upgrades. Almost all construction efforts ceased after the outbreak and many planned business upgrades were put on hold due to the extraordinary circumstances. In 2020, almost 67% of US construction firms reported cancellations or delays in planned projects.

The construction industry had to suffer from many layoffs as well and contributed a total of 10.1% to the overall unemployment rate in the country. Another issue for equipment purchasers and suppliers was the fact that many of their assets were shipped from China and Korea. Due to the travel and shipping restrictions, delays and canceled deliveries were a normal occurrence.

All these factors meant that the equipment purchasers in the market lost some of their biggest customers practically overnight; a hit the industry is still recovering from.

The Current State of Economic Activity

Now that 2020 is behind us and we are well into 2021, many people are looking towards the future with hope and a newly invigorated sense of cautious optimism. Several variants of a COVID 19 vaccine have passed clinical trials and are now being distributed all over the world. In the US, vaccinations are being carried out consistently with close to 63% of adults having received at least one shot. While the US hasn’t reached “herd immunity”, the situation has improved with the lowest new Covid cases in over a year.

From an economic standpoint, things are also beginning to improve. First quarter 2021 had an increase in real GDP of 6.4 percent. Many construction projects that had been sidelined are now starting up again and companies are starting to rehire and upgrade their capital to accommodate these new changes.

Obviously, as the construction industry starts picking up steam, so do their suppliers and equipment purchasers. Companies operating in this sector should expect their order volumes to increase steadily as the year progresses. Shipping should also be much easier now as many of the trade restrictions caused by the virus have been relaxed especially for heavy imports.

All this is good news for the economy and industry as a whole and although the situation of our worldwide health is far from resolved, it’s a step in the right direction and should usher in a wave of much-needed progress for many countries.

Predictions for the Future

Predicting the future is very difficult in the best of circumstances, which makes it almost impossible to do amidst a global pandemic. While the vaccinations are rapidly underway, it will be many years before every person in the world is safely vaccinated and protected. Another thing to note is the variability of success stories in our current times.

A serious problem down the line might be the different permutations of the virus originating in different parts of the world such as the one in the UK. This strain is said to be much more contagious and harmful than the current one we’re fighting which is alarming, to say the least. However, according to a World Health Organization official, the Covid-19 vaccines authorized for use in the US and Europe offer protection against the main variants known to exist.

All these factors make predicting the future difficult. The rapid nature of change might clear things up quicker than we anticipate, or it might worsen them considerably. As cautious optimists, we think humanity will keep fighting this battle and we and our economies will adapt to accommodate the changes necessary to do so. It might be wishful thinking but if things keep progressing the way they are now, then our industries might recover sooner than we think.

We hope this article helped give some clarity to the current situation of the worldwide pandemic and what it means for the equipment and software purchasing industry.

If you’re interested in getting financing for your customers 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.

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A Small Business Owner’s Guide to Obtaining Equipment Financing in 2021

Equipment Financing
Equipment Financing

A Small Business Owner’s Guide to Obtaining Equipment Financing in 2021

It’s no secret that upgrading the tools you use on a daily basis is key to long-term success and growth as a business operating in the twenty-first century. The benefits are undeniable and strategically upgrading your equipment can help lower your costs, produce higher quality products, and can help you develop a loyal customer base.

This is easier said than done though and among the problems of upgrading existing equipment, the biggest one seems to be the associated cost. Because of the high demand and incredible engineering required, most machines are very expensive and require a significant amount of capital to either purchase or maintain regularly.

But thankfully, just like our machines, our financing options have also progressed to make the process much simpler and accessible to almost everyone. In this article, we’ll walk you through the benefits of upgrading your equipment (if you’re on the fence), the options available to you, and why private financing is probably your best bet.

Benefits of Upgrading Your Equipment

Before jumping into financing your next upgrade, it’s important for you to rationalize the potential gains of said upgrade. If the improvement in your tools is not going to carry over to a marked increase in your profitability, then it’s an unnecessary expense you should probably avoid.

There are, however, some fantastic benefits to be had through upgrading your equipment and we’ll dive a little deeper into them down below:

  • Productivity. Perhaps the biggest reason you should consider an equipment upgrade is because of the increase in production capacity you will likely see. Machines can work longer and faster than humans. They don’t need breaks, and as long as you’re keeping them well maintained, don’t need to be motivated to work harder. As a result, you can increase the volume of your operation which will, in turn, help you reach economies of scale much quicker.
  • Fewer Accidents. Another huge benefit of utilizing machines in your workflow is the decrease in hazard probability. Newer machines are equipped with advanced features that help them perform their functions while keeping safety standards in check. A good example of this are lasers that stop the machine instantly if something passes through them.
  • Better Consistency. Besides producing more volume, better equipment can help you greatly streamline your quality control. Machines very rarely make mistakes and can recreate something thousands of times over without missing a beat. They’re also good for catching mistakes in production that might escape the human eye or understanding.

Your Options (Banks vs Private Financing)

Now that you’ve understood the benefits of potentially upgrading your equipment, let’s get into the two most popular financing options available to you: bank loans and private financing through a third-party vendor.

Bank loans are an incredibly popular financing option and chances are you’ve probably thought about going down this route at least once. Banks can be helpful in obtaining capital when the amount you require is monetarily very heavy. Banks are also a good option if you have a good relationship with them and have been in business for many years. This can help you get more favorable terms of lending that might not be possible otherwise.

The biggest hurdle for this option is dealing with the bank itself funnily enough. Banks are unwilling to invest in very small businesses with little to no credit history so if your operation is just getting off the ground, the chances of getting approved for a loan are next to zero. Besides having a good credit history and reputation, banks also require your assets as security, in case you’re unable to pay them back down the line. This can cause problems in the future for your business, as many examples have proven in the past.

Another thing that should be mentioned is fluctuating interest rates. The amount you have to pay the bank every month will vary according to the interest rate at that particular point in time. This creates uncertainty and can cause problems in your planning as the exact amount you have to pay may change significantly on a monthly basis.

The other option at your disposal is private financing. This increasingly popular option has many benefits for small businesses in particular. In a nutshell, private financing companies like Dimension Funding purchase the equipment you need for you and you pay them back over a fixed term.

Let’s look into some of the benefits private financing provides compared to bank loans in a little more detail in the next section.

Why Private Financing Could Be the Best Option

  • Fixed Monthly Payments. As we’ve already mentioned previously, banks operate according to interest rates and as a result, the amount you have to pay every month can vary quite significantly. Private financing on the other hand has fixed payments that you decide during your term settlement. This amount never changes and never fluctuates. This creates consistency and helps you plan your quarterly finances more efficiently as you know exactly what you have to pay.
  • Lock in Low Rates. Rates are currently very low right now. However with the potential for inflation, rates are likely to rise soon. Through private financing you can lock in low rates now and pay with tomorrow’s dollars.
  • Finance Up to $250k with No Financing Statements. “Application only” options allow you to get financing for equipment valued at up to $250k incredibly quickly as no documentation is required from you. Just an application. If you require equipment that is more expensive than $250k then you just have to provide your financial statements which will be processed much faster than bank loan procedures. Some of these procedures can take anywhere from a couple of weeks to a couple of months; time that you could have spent working and optimizing your business.
  • Finance 100% of the Costs. One thing that banks don’t disclose openly is the fact that they’re only paying for the equipment itself. There are many hidden charges like delivery, setup costs, maintenance, training, and you are expected to fulfill all of those yourself. Private financing companies, on the other hand, allow you to finance everything we’ve mentioned and more in your principal amount. This means that you get an all-inclusive option that covers everything you need to get up and running.
  • Fast Online Application Process. Instead of the tedious documentation and prolonged waiting periods that banks subjugate their customers to, private financing allows you to get what you need quicker and easier through a robust online application process. Just fill out the form and you can get approved in as little as a couple of hours.

Another thing that bears mentioning is that private financing companies like Dimension Funding can help you acquire almost any form of equipment you can think of. Commercial, construction, IT, software, material handling, and medical.

If you’re interested in financing your equipment 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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How Private Financing Is Revolutionizing Equipment & Software Purchasing

Equipment & Software Financing
Equipment & Software Financing

How Private Financing Is Revolutionizing Equipment & Software Purchasing

As we enter the second decade of the twenty-first century, our technology and machinery have progressed with an unprecedented degree of innovation. The capabilities and possibilities enabled by these innovations are quite literally endless. Almost all major businesses in the world utilize technology in one way or another and the demand for specialized equipment like robots and software is at an all-time high.

While the presence of this demand and interest is a good thing, the cost of admission continues to be a problem for both equipment purchasing partners and companies alike. There are workarounds to the problem, mainly bank loans and leasing, that lessen the burden but it’s not necessarily the best solution. But thankfully, there is another option that many purchasers are taking advantage of that you might not have considered.

In this article, we’ll tell you why privately financing your next equipment or software purchase through a third-party vendor could be the best overall choice for you and your business.

The Costs of Equipment Purchasing

You’ve probably understood already that equipment and software aren’t cheap. Especially the more specialized examples. This varies according to the equipment type and function of course but for the most part, it’s a serious financial decision to make. And also, a potentially beneficial one. The benefits of upgrading your equipment or using new production processes are huge and would require an entirely separate article to go in-depth into. The short version of all the benefits you gain access to include:

  • More productive capacity
  • Better pricing structures
  • Improved worker safety
  • More consistent work output
  • Higher quality work output
  • Potential to reach more customers
  • Ability to expand operations in more than one location

 

Bank Financing of Equipment & Software

Now let’s move onto financing your purchase through a bank. We’ll assume that you’re buying instead of renting the equipment or software in question. Renting isn’t a bad option by any means but as the instances of its usefulness are niche in nature, we’ll stick to the more orthodox approach of buying equipment outright.

Bank loans are the conventionally popular choice and there are certainly advantages to this approach. For one thing, banks can loan a very large amount of money if required. For another, if you already have a good relationship with your bank and have been in business for a considerable amount of time, then acquiring the loan will be much easier.

Bank loans have problems that many people don’t think about before making this important decision, however. Here are some of them in a little more detail:

  • Getting the Loan Itself. As we’ve already mentioned, getting a loan as an established business is easy but getting one as a new startup is almost impossible. Banks will very rarely trust newcomers with a huge amount of capital without a proven track record and it’s a classic catch 22. This is a big reason why bank loans are an inefficient choice for small business owners.
  • Assets Taken As Security. Another procedure in the loan approval process is agreeing to let the bank use assets of yours as security. The bank does this to ensure it doesn’t suffer a loss in case you don’t end up paying it back. Whatever the reason, it lessens your standing and negatively affects your company’s equity.
  • Only Equipment Is Financed. One thing buyers tend to forget is that there are many hidden costs associated with buying a piece of equipment or software. Delivery, setup, maintenance, training, troubleshooting, etc. All these processes come at a price and the bank will not assist you in handling them.
  • Uncertain Monthly Payments. Banks operate based on interest rates which fluctuate and change with the economic health of the country. Because of this, monthly payments are very rarely steady and can vary on a month-to-month basis. This makes financial planning a challenge and can hinder your yearly budgeting and profit forecasting.
  • Long Application Process. This might seem like a nitpick, but it’s an inconvenience, to say the least. Banks have very long application procedures and the waiting periods between appointments and approvals can either be a couple of weeks or a couple of months. Besides being a waste of your valuable time, it’s not a good option for people looking for a quick solution to a problem. So, unless you’re prepared to wait a while for your equipment purchase, bank loans might not be your best bet.

The Private Vendor Financing Solution

On the opposite end of the spectrum, private financing offers a much easier and more efficient purchasing opportunity for both small and large businesses alike. Companies like Dimension Funding are leading the charge in providing an easy, safe, and economically viable option for vendors and private customers alike.

The main advantages of private financing include:

  • Fixed Monthly Payments. Unlike banks that put you at the mercy of fluctuating interest rates, private financing lets you choose a low monthly payment for up to 60 months. This helps you plan out your finances better and keeps surprises at bay. You know exactly how much you’re paying each and every month. This amount is agreed upon during the sign-up process.
  • Up to $250k Without Financial Documents. You can finance equipment worth up to $250k through an “application only” option. This is in stark contrast to banks that have lengthy application processes as well as hefty documentation requirements. If the equipment you’re looking to finance is more than $250k then you just have to provide your financial statements.
  • Finance 100% of the Costs. As we’ve already mentioned, banks only finance the equipment itself. On the other hand, private financing companies like Dimension Funding finance everything for you. This includes all associated costs like maintenance, delivery, setup, etc. You don’t have to worry about unexpected expenses arising as everything is taken care of and included in your principal.

Because of these reasons, private financing has helped thousands of businesses and individuals finance their equipment and software upgrades quickly and easily. We hope this article helped explain the reasons behind this rise in popularity and gave you ideas for your own business and workflow.

If you’re interested in financing your equipment or software purchase 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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How to Boost your Customer Retention by Offering Financing

Boost Sales by Offering Financing
Boost Sales by Offering Financing

How to Boost your Customer Retention by Offering Financing

Vendors that offer financing allow their customer to make a purchase without paying the entire amount upfront. In the case of software purchases, this means turning expensive ERP or CRM software purchases into more manageable fixed monthly payments.

Vendors that provide financing are particularly attractive to businesses with limited operational budgets. Since they don’t have to make large lump-sum payments all at once, they are able to maintain more liquidity.

Foundational Basics of Having a Financing Partner

Vendors can partner with a finance company to provide financing to their customers. This allows the customer to pay for the software subscription over the life of the subscription up to 5 years. It’s a powerful financing option during times of economic slowdown when getting a bank loan can be extremely difficult for small and mid-sized businesses.

Instead of heading to the bank, a customer can borrow the required funds from the vendor’s financing partner – subject to certain commercial terms and conditions. The customer agrees to repay this loan for a fixed period of time, and at a fixed interest rate (as low as 0% in some instances with a vendor discount required), which is in stark contrast to traditional bank loans.  This helps businesses finance investments that wouldn’t otherwise be possible, while maximizing sales for vendors.

The Nuts and Bolts of Vendor Financing

For businesses, vendor financing gives them access to funds quicker, and at more favorable terms, than traditional bank loans. This also helps vendors sell more, even during economic downturns. It’s particularly beneficial for vendors selling intangible assets like IT, which most banks are hesitant to approve loans for.

What surprises many business owners is that vendor financing is similar to borrowing a loan from a bank. It simply lacks the normal complexities involved in doing so. In some cases, it’s filling out a one-page financing application. This simplifies the borrowing process for small or mid-sized companies that may not qualify for a bank loan or might be avoiding it due to high interest rates.

Key Takeaways

  • Vendor financing involves vendors advancing capital to their customers, solely for the purpose of purchasing hardware or software from them
  • Vendor financing helps to facilitate long-term relationships between vendors and their customers

Also, customers can invest in multi-year subscriptions, which often comes with a cost benefit. The ability to do all of this with 0% funding can be a game-changer for both the customer and the vendor. (Zero percent financing requires a vendor discount to the financing company.)

In this type of arrangement, vendors solidify long-term relationships with their clients, which minimizes customer churn rate, a serious concern in the software industry. On the other hand, it helps small and mid-sized businesses to manage their limited resources more efficiently.

The Top 3 Benefits of Vendor Financing for Businesses

  • Access to capital that they might not qualify for otherwise
  • Turnaround times from application to funding are much quicker than with traditional bank loans
  • Turn a large upfront software subscription payment into monthly payments; longer repayment terms make borrowing more affordable

The Top 3 Benefits of a Financing Partner for Vendors

  • Better profitability due to shorter sales cycles, increased transaction sizes, and up to a 0% financing option (vendor discount required), which eliminates the need for customers to “shop around” for a lower interest rate
  • Improves customer relationships
  • An advantage over competitors who lack the ability to offer funding to their customers

Conclusion

Vendors that provide financing can accelerate sales and lower customer churn rate, allowing vendors to minimize the need for frequent customer acquisition. Also, it gives the vendor a competitive edge over others who do not offer such financing options that customers truly need during these times of financial adversities.

At Dimension Funding, we help businesses with up to $500,000 financing for software subscriptions, without all the hassle. Any financing above $500,000 would require minimal paperwork, which is executed electronically.

If you’re interested in exploring vendor financing options for your customers, contact us today to learn more!

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3 Strategic Ways to Acquire Material Handling Equipment on a Budget

Materials Handling Equipment Financing
Materials Handling Equipment Financing

3 Strategic Ways to Acquire Material Handling Equipment on a Budget

As the rate of economic expansion has increased so has the demand for specialized construction equipment. Much of 2020 bought a fast upward trajectory to a standstill but the tide is turning quickly. With vaccines being formulated to combat COVID 19, economic upturn is just around the corner.

Construction equipment contractors or vendors will be operating at full capacity very soon because of this. The acquisition of material handling equipment will certainly be a top priority especially if your fleet is underdeveloped. But the staggeringly high upfront costs make this a tough decision.

Thankfully, there are many ways you can stretch your budget when it comes to acquiring new equipment.

And in this article, we’ll show you how to do just that. We’ll run through the types of material handling equipment you might require, we’ll go over the options at your disposal, and will tell you why private financing could be your best bet.

The Types of Material Handling Equipment at Your Disposal

Material handling basically refers to the loading, unloading, and movement of goods within a factory or warehouse with the aid of mechanical devices. There are many iterations of machines that carry out such processes. Their classifications and examples include:

Storage and Handling Equipment

  • Shelves
  • Racks
  • Bins
  • Drawers
  • Stacking frames
  • Cantilever racks
  • Mezzanines

Bulk Material Handling Equipment

  • Stackers and reclaimers
  • Hoppers
  • Grain elevators
  • Bucket elevators
  • Conveyor belts
  • Dump trucks
  • Screw conveyors
  • Rotary car dumper

Industrial Trucks

  • Hand trucks
  • Side loaders
  • Pallet trucks
  • Walkie stackers
  • Order pickers
  • Platform trucks
  • Forklifts

Engineered Systems

  • AGVs
  • Conveyor belts
  • Robot delivery systems
  • Automated Storage and Retrieval System (AS/RS)

Your options to acquire Materials Handling Equipment (Rent vs Buy or Lease)

Once you’ve decided on the equipment you want to invest in, your next choice is determining whether you want to rent or buy said equipment. This choice will be heavily influenced by your individual circumstances and the lifecycle of your operations.

When You Should Rent Materials Handling Equipment

Renting is a great short-term option. It allows you to get the tools you need quicker and cheaper when compared to buying outright. The amount of time you can actually use the equipment varies on your project and the agreement itself. These are usually quite flexible so finding agreeable terms shouldn’t really be a problem.

This is especially good if you just need a machine for a certain project. If your project requires a small machine you can rent just that for the required time instead of investing significant money. Niche use cases like these benefit the most from renting opportunities.

Another good thing about renting is the fact that you don’t have to deal with the maintenance of the machine. This not only saves time but also lets you save on service costs which can add up over time.

When You Should Buy or Lease Materials Handling Equipment

If you intend on using the material handling equipment for a long time, then buying is for sure the way to go. It ends up being more cost-effective in the long run when you factor in the frequency of usage and the costs of renting. If you have the funds, then investing in certain workhorse equipment pieces that have a wide range of functions is definitely wise.

Besides the cost savings compared to renting, buying is also the more convenient option. You can use the equipment bought whenever you require it and you don’t have to rely on the handler’s schedule or priorities. You can also save time by avoiding having to rent every time you take on a new project as the process can be tedious.

You also have the advantage of getting the exact equipment you need, and you gain the ability to customize it to your liking. You can even change the color to be more suited to your company; something you can’t do with rented machines. And with so many options to buy used or refurbished equipment, buying outright might not even be that costly to begin with.

Leasing equipment can be another way of purchasing equipment. A finance agreement and lease agreement look very similar and both result in you owning the equipment. In the case of a lease agreement, at the end of the term you buy out the lease, usually for a nominal sum such as $1. There are tax advantages to leasing or buying because you can write off the payments on your taxes. (See your tax advisor for more information or guidance on tax matters.)

Why Private Financing Is the Way to Go

Getting a bank loan is an option but we believe privately financing your materials handling equipment through companies like Dimension Funding is your best choice. Here are some reasons why:

  • Fixed monthly payments. Unlike banks that put you at the mercy of fluctuating interest rates, private financing lets you choose a low monthly payment for up to 60 months. This keeps unpleasant surprises at a minimum and allows you to plan your finances better and more efficiently as you know exactly what you’re getting into.
  • Up to $250k without financial documents. You can finance equipment worth over $250k through an “application only” option. You can get exactly what you’re looking for super quick because of this and if the equipment you need is higher than $250k you just have to provide your financial statements.
  • Finance 100% of the costs. Banks only finance the equipment itself. When it comes to the maintenance costs, delivery, and setup, you’re on your own. Private financing, on the other hand, includes all these costs into your application. You get an all-inclusive option that covers everything including the equipment.
  • Unsecured. Banks usually require all of your company’s assets as collateral for a loan. Private financing companies only use the asset being financed as the collateral.

Budget constraints shouldn’t be a limiting factor in your expansion. Knowing your options and making smart decisions on how and when to finance your upgrades is all it really takes. Keep your business goals at the forefront of all your decision making and you’ll be on the right track!

If you’re interested in financing your material handling equipment 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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Vendor Financing Programs: Why There’s No Better Time Than Now

Vendor Partner Program is your Road to Success
Vendor Partner Program is your Road to Success

Vendor Financing Programs: Why There’s No Better Time Than Now

Vendor financing is an important marketing and sales tool available to equipment manufacturers, dealers, and distributors. Even when the economy was doing well, a significant number of equipment buyers were opting for purchases financed by the equipment vendor.

Now that the economy has been in an economic slowdown and cash liquidity is a major area of concern for most companies, equipment & software financing is in greater demand. This is especially true for small and medium-sized organizations that need the equipment or software now, but don’t have enough in cash reserves to fund the entire purchase upfront.

From a vendor’s perspective, the ability to finance a purchase is an important one, especially if their competitors can and they can’t.

Why?

Because businesses that are unable to make a purchase outright would have no choice but to go elsewhere to a vendor who can work with their current financial situation.

The issue is that for many small or medium-sized vendors, they simply don’t have the financial resources to compete with large manufacturers/vendors with captive financing capabilities and successful vendor financing programs of their own.

Vendor Financing Programs Are a Win-Win

For equipment buyers, a vendor financing program gives them the flexibility to make installment payments (typically on a monthly basis), so they don’t deplete their working capital. Often times, there’s also the option of leasing, if need be, against an outright purchase of the equipment.

For the vendor, equipment financing enables a long-term relationship building exercise with the customer, leading to an increase in customer loyalty, repeat purchases, cross-selling, and technology enhancements as and when required. This translates into more business and additional revenue.

Selecting the Right Vendor Finance Partner

While the need for vendor financing can’t be underestimated, the real challenge for many vendors lies in their ability to set up an equipment or software financing program on their own. Most small and medium-sized vendors simply don’t have the requisite finance – or infrastructure – to manage and run a financing program on their own. They also lack the knowledge and experience. As such, finding a suitable finance partner is paramount to success.

A good finance partner will have access to capital, as well as the requisite expertise to successfully manage an equipment and software financing program. In addition, the selected partner should have a proven track record of vendor financing in the specific industry in which the vendor is operating, as industry-specific knowledge and experience is critical to the successful implementation of such vendor financing programs. The financing partner should also have a large capital base to be able to provide long-term solutions and stability to relationships both with the vendors and their end customers.

Once a vendor has selected a financing partner, the end-goal should be to build a long-term and sustainable relationship with a single financing partner instead of exploring multiple different options.

Get Assistance with Setting Up a Vendor Finance Program

To have a more detailed discussion on this subject and understand all the benefits of setting up a vendor financing program for your customers, contact us today at 800-755-0585.

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