Yesterday I got an email from Bob Bell at United Funding. I’ve never met Bob, nor do I have any kind of relationship with his company. I got the letter because I’m on the attendee list from last year’s Imaging USA show. What Bob didn’t know when he sent it out was how timely his information was. His topic of equipment financing couldn’t have been more appropriate to attendance at upcoming shows, equipment needs for professional photographers, the challenges of the economy or, for that matter, a series of previous posts I’ve written about expenses and financing.
His email was short and sweet, just two paragraphs long – no hard sell, just some great information:
We at United Funding, the PPA Affinity Partner for equipment financing for over ten years, talk to professional photographers every day, and realize many have been limping along with older gear due to the economy. We have seen a significant uptick in activity in September and October and I hope it’s a positive sign for all of us.
There’s more good news. There is a little known provision in the tax code designed to help small businesses like yours acquire new equipment. It’s called IRS Code Section 179 and it allows you to write off 100% of the cost of new equipment placed into service by the end of the year. Our lease and loan products qualify for this deduction. So, you get the best of both worlds. You get to expense the entire cost of the equipment but only have to come up with a few payments. Keep in mind this is a, “use it or lose it” opportunity. Once you ring in the New Year, the deduction is gone. Here’s an example:
Equipment Cost: $10,000 Monthly Payment for 48 months: $300
Tax Savings: Assuming a 25% marginal tax rate: $2500
That was Bob’s entire pitch. None of the usual “you’re almost out of time” approach, just some incredibly valuable information to help you find another way to upgrade equipment as you go into 2012. He closed with a link to a financing application. So, here’s that link.
Don’t be thrown by the PPA logo if you’re not a PPA member. I called Bob and spoke to him about the program. While there are obviously qualifiers, you don’t have to be a member of PPA to qualify for a United Funding package. So, knowing that, here’s what I wish every photographer in need of gear would do - just take the time to understand your options. It doesn’t cost you anything except a few minutes of your time.
Years ago at Hasselblad we had a great leasing program with a buy-out option and the tag line in the ad campaign was, “Now you can utilize our assets without depleting yours!” The economy has been tough the last few years and it’ll continue to create challenges. At the very least you owe it to yourself to understand all of your options, especially when it comes to cash flow and maximizing your deductions while minimizing your cost to do business.
It’s not rocket science – just feels like it some times!
