As a business owner, it’s important to stay up-to-date on tax laws and deductions that can help you save money. One such deduction is the Section 179 tax deduction, which allows businesses to deduct the full purchase price of qualifying equipment and software in the year it was purchased. This deduction is especially valuable for small businesses and self-employed individuals who may not have the capital to make large purchases. For tax year 2024, the Section 179 deduction limit is set at $1,220,000, which means that businesses can deduct up to $1,220,000 of the cost of qualifying equipment a ..read more

As a business owner, you’re constantly faced with decisions that can shape the trajectory of your company’s success. One such decision often revolves around acquiring equipment, and the choice between paying in cash or financing can have significant implications for your bottom line. At American Capital Group, we’ve engaged in countless discussions with business owners grappling with this dilemma. Let’s explore why financing equipment might be the smartest investment strategy for your business. The Cost of Cash: Many business owners hesitate to finance equipment due to concerns about borrowin ..read more

What is Section 179? For starters, the name is in reference to Section 179 of the IRS tax code. It allows small to medium-sized businesses to deduct up to $1 million worth of qualifying equipment or software from their net income if it was purchased or financed within that year (January 1 to December 31st). The goal of deducting the total depreciation expense of the equipment within the current year is to reduce a company’s taxable income and leave incentives for more purchasing in the future by optimizing cash flow. How does Section 179 work? Simply put, if you purchase $1,160,000 or less in ..read more

Many business owners are considering the purchase of used equipment to expand their operation. Since there are risks in purchasing used equipment, we have a few useful tips to help simplify the process as well as head off potential problems before our customers are stuck with a bad investment. Before you start looking it is best to do a brief cost/benefit analysis. Consider the following: Do you need to hire an additional person to operate this machinery? What is their monthly cost? Are there additional fuel or material costs? How much more productive will this equipment make your company…do ..read more

We believe in empowering our customers to make smart financial decisions that lead to long-term success. Our “Take the Summer Off” program has provided numerous business owners with the means to strengthen their financial positions while enjoying a well-deserved break. In this blog post, we share inspiring stories of how some of our customers have utilized their funds from the program to generate revenue, pay off debts, invest wisely, and create memorable experiences. We hope these stories will inspire and guide other entrepreneurs towards financial prosperity. Story 1: A Revenue-Boosting Inv ..read more

In your business growth journey, whether to lease or buy equipment is a critical decision. Both choices have their pros and cons, and the right option depends on your specific circumstances and needs. In today’s email, let’s compare these two paths to help you make an informed decision. EQUIPMENT LEASING Benefits: Preserve Cash: Leasing requires little to no upfront cost, allowing you to preserve your capital for other business needs. Stay Updated: Leasing offers the flexibility to upgrade to newer equipment models at the end of your lease term, helping your business stay competitive. Predi ..read more

As a business owner, it’s important to stay up-to-date on tax laws and deductions that can help you save money. One such deduction is the Section 179 tax deduction, which allows businesses to deduct the full purchase price of qualifying equipment and software in the year it was purchased. This deduction is especially valuable for small businesses and self-employed individuals who may not have the capital to make large purchases. For tax year 2023, the Section 179 deduction limit is set at $1,160,000, which means that businesses can deduct up to $1,160,000 of the cost of qualifying equipment a ..read more

Many business owners are reviewing bank line of credit options with the recent instability in the banking industry.  Managing lines of credit is essential for the long term success of a business.  Here are some conditions business owners should keep their eyes on when utilizing a bank line of credit: Most lines of credit are based on a variable interest rate…this means every time the Fed hikes rates then the debt being carried on the line of credit gets more expensive. A bank line of credit typically has blanket lien provisions. This means a business is putting up all their ..read more

Given the current instability of the banking industry, there are several actions that businesses should consider taking: Be cautious about getting deeper into debt with your main bank: Most bank lending documentation have a call provision whereby if the bank is in trouble they can call your note. Be careful about having too many eggs in one basket. Diversify your banking relationships: Spread your funds across multiple banks rather than relying solely on one institution. This can help mitigate the risk of any single bank failure affecting all of your funds. Monitor financial health: Stay inf ..read more

As a business owner, it’s important to always be looking for ways to improve your operations and maximize your profits. One way to do this is by investing in new equipment or upgrading your current machinery. However, the upfront cost of new equipment can be a significant financial burden, and many business owners may be hesitant to take on debt, especially when interest rates have risen substantially. While it’s true that rising interest rates can make financing more expensive, there are still several reasons why it may be worth considering financing equipment for your business. 1.  Equ ..read more