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Let’s be honest.Financing won’t be the answer to every obstacle you face as a business owner. That’s just the truth. But for some of those obstacles, financing is exactly the right tool your business needs to get ahead. Join us to explore some common challenges small business owners face every day, and discover how financing can help turn them around.

The Problem:Shoot. A key piece of equipment is broken, and now your business is suffering.You were probably relying on that computer, backhoe, or tractor to help drive momentum and bring in revenue for your business. With it out of commission, your business is at a standstill. You can’t complete that construction job or invite new customers into your restaurant if the main asset that makes your business run smoothly is on the fritz.

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The Solution:Replace that equipment with equipment financing.Getting new equipment is time consuming (and expensive!). In business, there’s no time or money to waste. When that crucial piece of equipment breaks down unexpectedly, you need a quick, easy fix that won’t force you to empty your cash reserves. Enter equipment financing.

Why finance? Well, it’s easy, it’s quick, and...

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1.You have repayment term options.

Depending on your lease type, your lender will often give you a term as long as 72 months to pay back your funds.

2.You may see some tax benefits.

The payments on a Fair Market Value lease may be 100% deductible at tax time as an operating expense. We aren’t tax experts, so we definitely suggest asking your financial lawyer how the specifics of your equipment lease will work out for you around tax time.

3.You’ll spend less.

Equipment financing is less risky since there’s collateral involved. You’ll almost always get a rate that is cheaper than most other financing options. (Cha-ching!)

4.You’ll have the opportunity to own.

If you think the equipment you leased will continue to drive in revenue after your financing agreement ends, you have the opportunity to purchase it at the end of the term. Chat with your lender about what end-of-lease option would work best for you!

The choice is yours.

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Fair Market Value leaseLower monthly payments Budget your money better and have more financial flexibility over the course of the lease.

You have options 1) Buy the equipment outright at the fair market

value (often set by your lender).2) Give the equipment to the lender when the contract ends.3) Choose to finance the equipment for a longer period

of time.

$1 buyout leaseLow cost to own With a higher monthly payment, the cost to own is only $1 at the end of the lease.

Great for long-lasting equipment The longer the life cycle, the better the $1 buyout option becomes.

The Problem: One of your largest suppliers is offering a bulk inventory discount. But how will you pay for it?It’s the busy season, and taking advantage of this one-time bulk inventory sale will help fill your shelves and increase your margins. The catch is that you don’t have that kind of cash just lying around. Before you know it, your competitor has purchased the entire inventory before you’ve even had a chance to look at your bank account.

The Solution:Access cash quickly with working capital.Don’t miss out on opportunities because you don’t have the cash on hand. Invest in working capital, aka a small business loan. Here are some big reasons why working capital really is “opportunity money.”

1. You can use it for almost anything. From advertising expenses to hiring new employees for a busy holiday season, or even your next technology upgrade.

2. You’ll get it fast.Sometimes in as little as one day. The days of waiting for weeks are long gone. This way, you can be flexible to capitalize on immediate opportunities.

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3. The paperwork is minimal. One size does not fit all in business. Partner with a lender that offers competitive rates and convenient payment options to make it even easier for your customers to say “yes” to your products.

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Remember

that bulk inventory opportunity? Next time,

use working capital to nab a great quantity discount, since

you can pay the loan back quickly with the revenue generated from the sale

of the goods.

The Problem:You’re a vendor crushing a sales pitch to a customer, but they can’t afford to pay up front.You sell commercial trucks. Your customer wants to purchase one desperately, but just doesn’t have the cash. Is there anything worse than letting a sale get away because the customer can’t afford your product?

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The Solution:Offer your customers payment options.As a vendor, your priority is closing the deal and making the sale. Whether the cash comes directly from the customer or from a lender doesn’t really make a difference, right?

Offer your customers access to fast, easy, and affordable financing. Look for a vendor partner program that gives you and your customers financing that is:

1. Technology-driven

Your customers are busy, andso are you. Find a lender thatstreamlines the financing process with technology. A digital system like CIT’s allows you to follow along with the entire transaction so you never have

to ask for an update.

2. Flexible and affordable

One size does not fit all in business. Partner with a lender that offers competitive rates and convenient payment options to make it even easier for your customers to say

“yes” to your products.

The Problem:You’re ready to apply for financing, but your credit isn’t great.Whether you’re in this situation now, have been in the past, or might be in the future, it’s an important scenario to consider. “Bad” credit is the result of a lot of things – late payments and poor debt-to-profit ratio, to name a couple. There’s no denying that these can negatively impact your credit score.

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The Solution:Consider financing options for bad credit.Let’s face it. At some point, you will probably need to finance something for your business, and it’s natural to worry that a bad mark on your credit report will hinder you. Don’t worry. You still have options.

1. Equipment financing programs

There are equipment financing programs for most credit types, but be prepared to justify the cost and structure with the additional revenue the equipment can generate.

2. Working capital loans In many cases, if you don’t qualify

for an equipment lease, there will be working capital programs that can work for you. It may not be much. The rates may not be ideal. But when you need money, you need it now.

Financing tip

Don’t count out financing because of red flags on your report. Our advice?

Understand your credit report before approaching a lender

so you can explain those discrepancies and work to

take corrective action.

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The Problem:You’re a franchisor of 15 restaurants. It’s been several years, and features of your restaurants are starting to deteriorate.After many years in business, furniture, décor, paint, and other aspects of your restaurants may have some wear and tear. It happens, and it’s usually a good sign that you’ve hosted many happy patrons.

But eventually, customers could shy away because of an outdated look and rundown atmosphere. That’s when you know it’s time for a change. Unfortunately, remodels don’t come cheap, and your franchisees need to find a way to pay for it.

The Solution:Remodel with franchise financing.Make financing options available to your franchisees for a quick process that will ensure your restaurants get a new look ASAP.

When choosing a financial lender to work with, consider the following:

1.Speed, ease, and flexibility

Do your homework. That means asking for references from happy franchisees or franchisors. Ask if there’s a streamlined loan and approval process, and ensure the terms will work for a majority of your stores.

2.Customer service

Are they always available to help? Restaurant owners need to be focused on customers, not the financing process. Ensure that the lender you choose will handle most of the process so the franchisees can do what they do best: manage the business.

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The scenarios presented in this e-book are meant to simply be a starting point, since every business’ needs are different. No matter your situation, your financial provider should be able to find the best solution for your own unique business. Consider every option available to you before making a final decision.

Every small business is different.

Remember:

Financing may not be able to solve every small

business obstacle, but we are convinced it

can solve most.

About CITCIT's Business Capital division empowers small, mid and large cap businesses by providing equipment financing solutions via technology-enabled platforms and market leading structuring expertise.

CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (NYSE: CIT) is a financial holding company with over a century of experience, and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender).

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Not all applicants will qualify for financing. All finance programs and rates are subject to final approval by CIT, and are subject to change at any time without notice. Speed and performance are subject to applicant’s local connectivity and other factors outside CIT’s control. This e-book is not intended to offer any tax advice or other advice. Applicants should consult with their tax advisors concerning their specific tax situations.

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