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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4 Easy Tips to Help You Use Financing to Boost Your Sales

How to Use Financing to Boost Sales
How to Use Financing to Boost Sales

4 Easy Tips to Help You Use Financing to Boost Your Sales

Private financing is quickly becoming a standard across almost every industry you can think of. It’s not hard to see why. The ease of use, the utilities it provides, and the customer satisfaction potential makes financing a great option for vendors to offer to your end consumer.

Integrating vendor financing into your workflow in an unobtrusive, organic way can be a challenge, especially if this is the first time you and your customers are exposed to it. In this article, we’ll help you better understand the framework behind financing, and we’ll give you 4 tips on how to incorporate it into your sales pitch.

1. Understand the “Why Financing?” Question

The first and most important question to understand if you want to offer financing to your customers is the overall benefit this option provides and what your customers miss out on by deciding to go with alternative solutions.

In a nutshell, financing gives you the opportunity to offer your customers an easier method of payment. Instead of paying the entire amount upfront, your customers will be able to divide that payment into equal monthly installments.

The following reasons illustrate why monthly payments are important:

  • Lessen the burden of payment especially for capital heavy products like machinery which would call for a steep upfront investment.
  • Have a customized predictable monthly payment schedule. This helps your clients plan better and frees up more working capital for them.
  • No interest rate changes means stable payments. A bank loan can and will alter the payments depending on the interest rates at the time.
  • Little to no paperwork (in most cases).

When you put forth these advantages to your customers, they will find it much easier to rationalize the decision on what to do. You can only do this if you yourself are crystal clear on the problem you’re solving, and the net benefit your customers will receive from it.

2. Develop Holistic Marketing Strategies

Tying into our previous point, marketing strategies should be developed to help get the word out on your financing options. There are a myriad of ways you can do this. You can run social media campaigns, have branding in-store that illustrates the option, or even have it displayed prominently on your price tags.

If you’re selling equipment for example, instead of quoting the price as 10,000 dollars, you can put it in simpler terms by breaking down the cost into monthly payments of $200 or lower. This psychological shift helps customers rationalize the purchase and reduces the barrier between hesitating and going along with it.

Marketing experts use strategies like this all the time and there’s no reason why you’re financing efforts should be any different. Get creative with it. Come up with promotions, special deals on payment options, and unique ways of selling this idea. The chances are very high that your competitors won’t be doing the same and a strong marketing strategy could make a huge difference in your sales and customer satisfaction.

3. Train Your Team

Business owners and managers tend to forget sometimes that even though they might fully understand their products and services, it is ultimately their staff that has to network with customers on a day-to-day basis. For this reason, imparting financing knowledge to your team members is of paramount importance.

Educating your staff will help highlight financing at the point of sale. The customer will be given information about financing as an option from the get-go and will therefore go into the next phase of the sale with the knowledge that this option is affordable for them.

Be sure to train your team to highlight some important aspects when an interested customer inquires more about the option:

  • The customer will be able to start using the product instantly with no down payment necessary.
  • No security is required in the form of assets or liabilities.
  • Very minimal paperwork.
  • Outline the basic requirements.
  • Common questions and concerns.

Having well-prepared members of staff helps in more ways than one. It ensures that sales aren’t slipping from between your fingers due to misinformation and helps bolster your business’s professional credibility if everyone involved knows what they’re talking about.

4. Simplify the Sign-Up Process

You’ve done the hard work. Your customers know what the financing option entails and are ready to take the next step. A lot of companies start dropping the ball at this point. You stressed the ease with which financing can be obtained and the sign-up process should reflect these claims.

Having a fuss-free sign-up process minimizes customer frustration and lessens the chance of them abandoning their application altogether. Streamline the data collection process and have systems in place to account for any roadblocks. It’s also a good idea to offer as many sign up options as possible to make the customer experience even better. All modern financing options should have online applications as well as physical paperwork if required and you should let the customer choose whatever option they find most convenient.

You may have noticed that all the tips we’ve mentioned play off each other very well and are complementary. That’s because they cannot exist without one another. To create the best possible financing experience for your customers, you have to ensure that everything we’ve mentioned in this article is optimized and taken care of.

Taking the time to make these changes or finetuning your existing workflow will make a hugely positive difference in both your overall sales and customer satisfaction potential.

If you’re interested in learning more about financing for your business or your customers, be sure to contact Dimension Funding to get a head start on your approval process.

 

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6 Predictions for the Software Industry in 2021

Predictions for the Software Industry in 2021
Predictions for the Software Industry in 2021

6 Predictions for the Software Industry in 2021

The software industry has grown to an unprecedented level and with advancements happening at breakneck speeds, it shows no signs of slowing down any time soon. Whether you’re a manufacturer, a third-party vendor, or an interested enthusiast, the development of new methods and technologies is incredibly exciting.

2020 was a tough year for almost everyone and the software industry is no different. Restrictions and constraints forced everyone involved to think differently and to come up with better methods of doing work. Many parts of the industry that were advancing rapidly were unfortunately forced to come to a standstill owing to the nature of COVID 19.

A new year beckons a new start however, and the future has never looked better. The software industry will recover faster than any other industry and the hunger for progress will overcome the difficulty that follows.

In this article, we’ll give you 6 predictions on the future of the software industry in 2021 according to experts and people in the field. Familiarizing yourself with these developments will help you understand the trajectory of the industry better and will enable you to make better decisions financially and strategically.

6 Predictions for the Software Industry in 2021

Cloud Technology Improvements

As one of the rare subsets of the software industry that actually flourished during the pandemic, Cloud-based technologies have cemented themselves as an integral part of almost all workflows. COVID 19 gave us insight into using Cloud for downscaling as well as upscaling as the demand for services dropped dramatically. A good example of this would be industries like tourism where they had to uphold and maintain very expensive data centers even though the demand for the industry fell to almost zero.

Analyst Forrester has predicted that the Cloud infrastructure market would grow to an amazing 120 Billion dollars in 2021. This paired with a 35% growth rate indicates a high demand for Cloud-native engineers as well.

AWS Will Have Stiffer Competition

Amazon Web Services leads the charge in public Cloud vendors with an amazing 32% market share. However, the competition is quickly closing in on Jeff Bezos’s behemoth. Microsoft saw a 48% annual growth with their cloud offering with a 19% market share. Google trails behind with a still-impressive 7% market share but hot on its heels is Alibaba with a 6% market share.

Experts believe that Amazon and Google will keep the first and second spots respectively but Alibaba will overtake Google for the third spot. The multi-cloud initiative will also gain more momentum in 2021. Even though Amazon was reluctant to join the initiative at the beginning, it has had to give in as its competitors saw incredible results by joining.

Python and JavaScript Hold Their Own

The programming language terrain has also seen a major shift in recent years. Heavyweight, clunky programming languages are being replaced by easier to use, more developer-friendly languages like Python and JavaScript. With thousands of newer developers entering the market rapidly, the demand for these languages will exponentially increase as well.

Python leads the charge in data science while JavaScript upholds its crown as the best language for web development. Older languages like Java and C++ are feeling the pressure but their demise is still far away. The many software types that these languages account for still necessitate their existence. Their creators recognize the shift to easier to understand languages however and are constantly sending out updates to improve the functionality and usefulness.

Quantum Computing for the Win

Every industry has breakthrough technologies that quite literally revolutionize the field and for the software industry, quantum computing seems to be heading in that direction. According to experts in the field, it has the potential to impact every sector.

Quantum computing promises to be miles ahead of even our most advanced supercomputers. The possibilities it will unlock are quite literally next level as we aren’t even aware of them. While we still have some years to go for this technology to hit the mainstream, 2021 will make significant strides.

In 2020 Honeywell claimed to have created the world’s most powerful quantum computer beating out Google. Just a few weeks ago, scientists from a university in China demonstrated how Quantum Computing could beat our most advanced supercomputer at particular tasks like Gaussian Boson Sampling. These are just some of the developments taking place in the field and with our brightest minds working around the clock to make the impossible a reality, 2021 will bring awe-inspiring Quantum computing breakthroughs.

Artificial Intelligence Gets Smarter

You knew it was coming. If quantum computing is the revolution of the future, Artificial intelligence (AI) is the revolution of today. 2020 saw many permutations of advanced AI become a reality and 2021 seems to continue that trend.

Natural language processing saw incredible breakthroughs with GPT-3. The OpenAI created software creates human-like text made possible through Deep Learning. It literally made headlines when this article was written entirely using GPT-3! This could mean that small articles or even programs can be managed entirely by AI.

Other advancements in 2021 will include a shift towards ethical AI and explainable AI and we may even see laws posed by governments to regulate the technology and to prevent its misuse.

Blockchain Improvements

Another disruptive technology making waves in the industry is Blockchain. The potential is incredible and although Cryptocurrency may have tarnished its reputation, the possibilities are still exciting.

Many people capitalized on the popularity of Bitcoin and created elaborate scams to cheat people looking to get rich quick. Governments have even started cracking down on such schemes to protect the general public.

This created a lot of animosity and mistrust in the Blockchain technology for obvious reasons. However, Blockchain offers far more than just digital currency transfers. Companies will start to use the technology to store records, manage supply chains, and ironically even prevent frauds. Experts forecast that Blockchain will be used more as a smart contract mechanism in 2021. To further cement its importance, China has even added Blockchain in its 50 trillion “New Infrastructure” plan.

We hope this article gave you better insight into the future of the software industry in 2021 and beyond.

Financing your Next Software Upgrade

If you’re interested in learning more about financing your next software upgrade through a third-party vendor, be sure to contact Dimension Funding to get a head start on your approval process.

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Why You Need a Software Financing Partner

Benefits of a Software Vendor Partner
Benefits of a Software Vendor Partner

Why You Need a Software Financing Partner

Many small and medium businesses desperately need new software and subscription services; however, they lack the capital and cash to purchase everything they need to run their company successfully upfront. Unfortunately for software vendors, this means that you are missing out on valuable opportunities to get your product and services into the hands of business owners everywhere.

What you may not realize is the solution to marketing your product to every business owner is to offer financing. Allowing your customers and clients to order, install, and maintain the subscription software while making monthly payments will encourage more consumers to purchase and use your software.

As a business owner, you’re probably thinking, “I don’t have the money or capital to just allow my product to walk out the door without it being paid in full.”

Every business owner asks that same question and what you might not know is that there are funding groups available who can be your subscription software financing partner and solve that problem.

The Benefits of Partnering with a Software Financing Vendor

There are many more benefits to partnering with a financing company beyond the ability to get your product into more consumer’s hands. When you partner with a financing company, you will see your profits shoot up. Customers will be more interested in your software knowing they can make monthly payments rather than having to save up hundreds or thousands of dollars for subscriptions and software. When you allow financing of your product through a financing company, the payment to your company is still the full price of the software. The payment will just come from your funding partner rather than the customer.

These monetary perks are exceptionally useful amidst global pandemics and economic downturn when businesses are struggling for cashflow and working capital. However, some financing partners, like Dimension Funding, offer a lot more perks as well including tailored marketing services.

Here are a few of the marketing services that we offer…

Co-branded Landing Pages – We create tailored landing pages on the Dimension Funding website that offer financing promotions to your prospects based on their unique needs. You get a personalized link to distribute to your prospects offering financing and co-branded with your logo, information and value proposition. We work with you to offer promotions that will engage your prospects and turn them into sales. Work with our marketing department or your account manager to put together landing pages that will promote your products and offer financing options that makes sense for your customers.

Advertising Flyers / Datasheets – We design co-branded flyers or datasheets in PDF format for your use in turning prospects into sales. We offer special promotions to your prospects designed to meet the needs of your prospects. We create professionally designed flyers and datasheets for your use to give to prospects and customers that offer financing promotions, special offers and the benefits of financing that eliminates a large cash outlay and saves working capital.

Email Marketing – Dimension Funding will help you with email marketing and messaging that will get a better response from your prospects. We may be able to expand your reach with email marketing ideas and concepts that will engage prospects.

Exclusive Offers – Be the first to be able to offer discounts and special financing offers to your prospects and customers. By offering financing promotions designed for your customers, you can turn more prospects into customers and close more deals.

Custom Promotions – Just for your Prospects If you have an idea for a custom financing program tailored to your prospects, we will work with you to put it together. There are limitations on what is available but within those limitations, we can create personalized promotions for your prospects and customers that will generate more sales. Customized promotions can also help to close many deals instead of the prospect going dark.

White Papers / Literature – Work with Dimension Funding to create White Papers, Blog Posts or other Literature that can be used to generate more prospects. We will promote these on social media, in our quarterly newsletter and in our email-marketing reaching many thousands of prospects.

Social Media – As a preferred vendor in our vendor partner program, we will work with you to create cobranded LinkedIn posts and other social media posts to get you in front of an expanded audience and engage your current LinkedIn audience with messaging that will generate more interest and leads.

Dimension Funding will also work with you to generate sales and increase your leads by adding valuable widgets to your website such as a financing tool that allows customers to apply for financing directly online through your site without having to speak to anyone.  A payment calculator is another option that Dimension Funding can add to your site as well as a mobile app that allows you to get financing information from their iPhones.

Who would have thought that your subscription financing vendor could also serve as your marketing partner? Dimension Funding is the partner you are looking for to grow your business through offering innovative solutions to financing to your customers and clients that also address your marketing needs.

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What the Future of the Construction Equipment Industry Looks Like for 2021

Construction Equipment
Construction Equipment

What the Future of the Construction Equipment Industry Looks Like for 2021

With new developments taking place more frequently, the evergreen construction industry looks more promising than ever.

It’s important for manufacturers and vendors to understand the trajectory of this projected growth so that they can ensure their processes and end product reflect these changes favorably.

In this article, we’ll do exactly that. You’ll understand the reasons for expected growth, what areas of construction are doing well, what construction equipment is in high demand, and the impact of COVID 19 on the industry and manufacturers as a whole. 

Reasons for Construction Industry Projected Growth

According to statistics and market growth patterns, the global construction equipment market is expected to expand at a 4% annual growth rate in the next decade. This is despite a literal and proverbial roadblock in the form of a global pandemic.

There are a number of reasons that could potentially contribute to this projected increase:

  • Renovations and uplifts of old buildings is an increasingly popular development process employed by many countries. Tourism greatly benefits from well-maintained landmarks and historic sites which is why governments and agencies are willing to put a lot of money and effort into these uplifts. Some construction companies and equipment are specifically designed for this job alone.
  • Governments’ efforts to continuously build roads, railways and highways help drive sales and continuous growth.
  • The advent of new technologies like AI and IoT will make machines more capable and as a result, their services and the people who make them will experience an uptick in demand.
  • New businesses and avenues are created all the time, and many of the renovations, offices, buildings, and factories require the use of heavy-duty construction equipment.

These reasons are very general, of course, and there could very well be others that contribute to the growth, but the majority of it will be driven by the factors outlined above.

What Areas of Construction Are Doing Well?

If vendors understand what areas of construction will perform well in the future, they can model their production or rentals to reflect this. All construction projects are usually divided into either private or state procedures.

Private construction projects are the main contributors to general overall construction volume as many multinational companies have big ideas and even bigger budgets. Let’s take a look at some in demand private construction avenues.

  • Residential Construction – The demand for every type of housing is continuing to rise exponentially. Developed parts of cities have a need to make increased houses and apartment complexes for residents while less developed cities require construction equipment and services even more pressingly.
  • Commercial Construction – Buildings or similar structures created for commercial purposes fall in this category. There are a huge variety of opportunities in this segment which includes skyscrapers, grocery stores, shopping centers, private hospitals, private schools, etc. As overall global spending power increases, the demand for recreational buildings or even office spaces will continue to rise along with it.
  • Industrial Construction – This is a more niche segment of the general construction industry and because of the huge capital required for execution, isn’t very easy to work on. Industrial construction includes projects like power plants, manufacturing plants, factories, solar wind farms, etc. Though they might not be as executable as commercial or residential construction, the demand for bigger industrial projects is still high as industries have to keep their production processes updated which necessitates constant expansion and upgrades.
  • State Construction Projects – Projects that are commissioned or executed by a county, city, government board, or any other state-funded entity fall into this category. Railways, dams, highways, and airports are a good example. While the demand for such construction in developed economies like the US is fair, the demand in developing economies is huge. As these countries progress, they will require better infrastructure for their residents and the demand for construction equipment will rise along with this.

What Construction Equipment Is in High Demand?

Each project type requires specific equipment and procedures for execution but there are general pieces that are always relevant and needed. If you’re an equipment manufacturer then specializing or at least including one or all of these in your production will be a very fruitful investment:

  • Excavators
  • Loaders
  • Bulldozers
  • Concrete mixers
  • Scrapers
  • Dump Trucks
  • Forklifts
  • Graders
  • Cranes (mobile, crawler, tower, etc.)

Besides these all-stars of construction equipment, it might also be a good idea to look at some emerging technologies in the field.

Developments in remote-controlled equipment, connected machines, autonomous vehicles, and electronic power supplies are very promising.

Adapting or at least researching such developments could prove to be incredibly beneficial in the coming decade, especially for construction equipment vendors who want to stay on top of the competition.

How Does This Growth and the COVID 19 Pandemic Impact Small Construction Companies?

An increase in demand for construction will obviously increase the demand for the construction equipment required to carry out the construction too. Manufacturers would have their hands full and the growth rate for the industry as a whole is very promising and encouraging. At least it was until the COVID-19 pandemic started.

There is no question that the outbreak of the Coronavirus has hurt the industry significantly. Social distancing makes construction of any kind almost impossible to carry out and with less consumption happening throughout the economy, many corporate projects in the pipeline have either been postponed or discarded.

While this is a difficult time and situation for everyone, it’s important to realize that like all tough things, this will pass sooner than we may think. Sticking through this turbulent period could yield huge results. After a recession like the one we’re going through, economic boom and growth are almost inevitable.

When this happens, the demand for construction projects and equipment will skyrocket. This isn’t just wishful thinking as analysts and experts are echoing the same sentiments. The time period is still a little confusing, but the upside is certainly one worth waiting for.

If you’re interested in financing your construction 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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The 5 Best Apps for Businesses in 2021

Business Technology Apps for 2021
Business Technology Apps for 2021

The 5 Best Apps for Businesses in 2021

Technology has revolutionized the way we do business and has helped us intuitively manage the day-to-day tasks associated with it. Developers are constantly working to make better, more useful tools to aid the ever-increasing number of entrepreneurs in their pursuit of excellence.

In this article, we’ll show you the 6 best apps you should be using for your business. For each one of our choices, we’ll detail their benefits and how you can take advantage of them.

Some might be familiar to you, others might be new, but all of them will definitely help supercharge your workflow!

Evernote

No best business apps guide could ever be complete without Evernote. A juggernaut in the industry with a legion of loyal customers and overwhelmingly positive ratings, Evernote helps you reduce your businesses’ reliance on paper, and allows you to collaborate and share ideas with your team members quickly and efficiently.

One of the best features of this robust app is the fact that it is tightly integrated with almost every service you can think of. This allows you to fit it into your workflow super easily with no chances of compatibility being an issue. You can save all your important documents and ideas in the app, which will then sync it to your team members and the other devices you use on a day-to-day basis.

Some other notable features include an incredibly sophisticated search tool, templates for to-do lists and notes, sketching capabilities and stylus support, and much more. Trying to list all the reasons you should use Evernote would be a huge undertaking in and of itself, but you can get a good idea of the benefits from this article.

Evernote is free for the basic version, while the Plus version requires a modest annual subscription.

Expensify

An incredibly popular tool known for its unique feature set and intuitive functions, Expensify is a must-have in your business tool arsenal. It allows business owners to easily track their employee’s work-related expenses by logging them into the app.

Expensify lets you upload receipts using any android or iOS device. They have other options too which include OCR smart scan, uploading a picture on their official website, or even using a Google Chrome extension. The app then records all this data for you making end of year reports and analysis that much easier.

With a great drag and drop interface, and the ability to extract images from receipts for expense reports, Expensify is a great tracking tool for small business owners. While it may not be as densely packed as other finance trackers, it does what it was created for reliably without fail. Best of all, it’s free for you to try.

Google Workspace

The Google Suite of productivity apps includes Gmail, Google Docs, Google Sheets, Google Slides, and more. These apps might not be as popular as their Microsoft counterparts, but they have an advantage that is quite simply unmatched. Using Google’s exceptional cloud storage software, these apps sync and update their content better than any other service on the market.

This makes real-time collaboration incredibly simple and intuitive with easy options to edit documents and text files on the go. As the apps are all internet-based, you can access them from anywhere with any device as long as you have a decent connection.

The basic version is completely free to use and only requires your Google id to sign in; a great option for small businesses that only need a couple of people to collaborate together. There are other subscription-based options for you to choose from if your needs are more intensive. You can find them all here.

Asana

Asana is a feature-packed project management app that is designed to keep your team members focused on the task at hand. Most project management software solutions are very complex with cluttered interfaces and settings but Asana is the complete opposite.

The app uses “boards” to intuitively follow the progress of any project and to delegate tasks between team members. The visual representation is easy to follow and with options to share notes, files, and deadlines within the app itself, the chances of missing targets or miscalculating are greatly reduced.

It also offers plenty of useful integrations with larger, more popular programs like Google Drive, Dropbox, etc, all of which help to make it the complete project management package. The app is free to use as a basic service with an option for subscription-based upgrades if you want everything.

Canva

It might surprise you to find a graphic design app on this list, but the benefits that Canva provides, especially for businesses that don’t have an in-house designer, are massive. Canva is a tool loaded with easy-to-use features and amazing functionality to create engaging content that is easy to share.

Perfect for businesses looking to level up their social media game, Canva has a plethora of templates for them to choose from. Instagram posts, social media banners, marketing materials, presentations, ads, and posters can all be designed within the app itself.

With social media becoming more and more important, having a strong presence is a necessity for businesses looking to take things to the next level and Canva might just help you do exactly that. The basic app is free to use with more advanced features available to unlock should you need them.

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Take Advantage of IRS Section 179 Before the End of 2020

Reduce your 2020 taxes
Reduce your 2020 taxes

Take Advantage of IRS Section 179 Before the End of 2020

As 2020 draws to a close, businesses all over the world are taking the time to reflect on the turbulent year, are making any last-minute changes to their plans, and are deciding the basis of the coming year’s procedures.

One thing you should start considering if you haven’t before this point is taking advantage of the IRS Section 179 tax deductions. This law gives you an incredibly affordable opportunity to finance your equipment upgrades or any other renovations you may have been planning.

The deadline to benefit from this is fast approaching though and the sooner you understand Section 179, the sooner you can make the best possible long-term decision for your business.

IRS Section 179 Explained

In a nutshell, Section 179 of the IRS tax code is an incentive formulated by the US Government that is specifically designed to encourage small businesses to increase their spending. This spending could be in the form of upgrading existing equipment as an example or implementing a new industrial workflow through updated machinery.

Section 179 does this by deducting the full purchase price of qualifying equipment or software bought during the tax year. This would allow companies to deduct the full price from their gross income as this expense would be considered a tax write off.

Specifics You Need to Know

To take advantage of this, the equipment you’re looking to purchase has to be eligible, and said equipment has to be bought and put to use BEFORE midnight on December 31st, 2020. There are also spending caps in place, mainly a:

  • $1,040,000 deduction limit
  • $2,590,000 spending cap.

The equipment you’re financing has to fall in one of the following categories to be eligible for Section 179:

Eligible for Section 179

  • Hardware (machinery, robots, computers, etc.)
  • Furniture
  • Vehicles designed for commercial usage (shuttle vans, cargo vans, trailers, etc.)
  • Off the shelf software
  • Property that is not a part of the building’s structure
  • Certain non-residential building renovations (roofing, alarms, fire systems, etc.)

Unfortunately, you cannot at this point in time take advantage of Section 179 tax deductions if your planned equipment upgrade falls into the following categories:

Ineligible

  • Property (permanent buildings, structures, swimming pools, parking areas, etc.)
  • Property being used or upgraded outside the US
  • Property used for the purpose of furnishing lodging
  • Property inherited or taken as a gift
  • Any property that does not fall into the category of personal property

The Benefits for Your Business

As Section 179 was passed in the hopes of bolstering general economic activity, it’s no surprise that many businesses will find the law quite helpful. A problem that plagues companies, especially the ones that operate at a smaller scale, is finding the resources to upgrade or automate their production processes and software.

These upgrades are very rarely affordable which is why many businesses have to continue to use older, unreliable equipment to carry out their production in the hopes of keeping their overall spending and costs down. This law changes all this. The IRS Section 179 tax deductions help alleviate a lot of the burden business owners face when making these tough decisions. Potential upgrades that may have been in the pipeline for years, can finally become a reality.

Better equipment will allow businesses to produce more products at a better quality and a lower price. It might also allow them to try newer, more innovative production methods to give their consumers an incredible product that helps their bottom-line and develops brand loyalty. All these factors play a big part in achieving economies of scale; a goal most businesses are actively striving towards achieving.

Next Steps

Now that you know all about the IRS Section 179 tax deductions, it’s time to understand the next steps on what you have to do.

The most important thing is making sure your upgrade is eligible and then acknowledging the December 31st deadline we’ve outlined before. As the month is almost drawing to a close, time is short and you will have to act fast if you’re still interested in your business benefiting from this law for 2020.

To claim the Section 179 deduction, you have to specify this on Part 1 of Form 4562. Include a description of the property, its cost, and the overall amount of Section 179 you’re claiming on this asset on Line 6. A list might also be attached in case you need more room.

If you’re unwilling or unqualified to fill this out, then it’s probably a good idea to hire an accountant to do this for you.

In terms of gathering funds, you can choose any financing option for your equipment upgrades and the Section 179 deduction would comply with almost all of them. This includes private financing companies like Dimension Funding. Choosing to finance your industrial automation upgrade through private financing companies like Dimension Funding has a myriad of benefits that banks and other lenders simply can’t provide.

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