Published September 23, 2024 | Updated November 11, 2024

The last few years have been tough for small businesses, with economic pressures forcing many to hold off on purchasing new equipment. However, as the landscape shifts, equipment sellers have a golden opportunity to help their customers prepare for the future – and to position themselves as essential partners in that growth.

Small businesses are beginning to eye the horizon, planning for the economic recovery. And those businesses that start discussions now will be the ones who are ready to take advantage of interest rate cuts, tax benefits, and increased market demand. As an equipment seller, you have the chance to educate and support your customers, guiding them through this critical time.

Why Equipment Sellers Shouldn’t Wait for Rates to Fall Further
Interest rates have begun to drop, and they continue to fall as inflation moderates, creating a significant opportunity for capital investments. The problem? Businesses that wait too long for additional rate cuts might find themselves in fierce competition for equipment and financing. As the Federal Reserve continues to lower rates, demand for financing will continue to surge. Equipment sellers who help customers plan now will be better positioned to close deals quickly when the time is right.

According to recent surveys, 41% of small business owners plan capital outlays soon despite current rates. Many of these businesses are simply waiting for a clear signal to move forward. By engaging your customers now, you can ensure that you're top of mind for the next rate drop, and they’re ready to invest.

Surging Equipment Demand and Limited Supply
Another key reason to act now is the potential shortage of high-quality used equipment. Currently, many sectors, especially construction and manufacturing, are seeing a surplus in used equipment. This window, however, won’t stay open forever. As rates continue to fall, competition for this equipment will skyrocket, with prices likely to follow.

As an equipment seller, you can help your customers understand that the best deals are available now, while there’s still an abundance of options and shorter lead times. Waiting could mean not only losing out on the most attractive used equipment deals but also potentially longer wait times for new equipment.

Leverage Tax Benefits for Stronger Sales Conversations
Another selling point you can use to build urgency with your customers is the significant tax advantage of investing before year-end. Section 179 allows businesses to deduct up to $1.16 million in qualifying equipment purchases in 2024. By starting conversations with your customers now, you can help them realize these savings while preparing them for the next stage of growth.

Combining this tax benefit with interest rate reductions presents a unique opportunity for your customers to invest in their future. For equipment sellers, it’s a compelling reason to reach out and start engaging customers before the year-end rush.

Help Customers Plan for a Competitive 2025
As businesses gear up for growth in 2025, your ability to help them plan their capital investments strategically can be a game-changer. Equipment sellers who engage customers now will be in a prime position to close deals quickly as demand increases, avoiding the long lead times and equipment shortages that will follow.

A recent survey of over 5,000 business owners found that 45% expect to make capital investments at a rate 20% higher in 2025 than the previous year. Sellers who build relationships now and offer flexible financing options can stay ahead of the competition and position themselves as trusted advisors.

The Power of Starting Conversations Early
At LEAF, we’ve seen it time and again: sellers who start discussions with their customers early secure the best deals. By preparing your customers to act as conditions shift, you can help them make informed, strategic decisions and ensure that your sales pipeline stays strong, even in uncertain times.

Rather than waiting for customers to come to you, proactive outreach and strategic education can make the difference. By explaining the benefits of purchasing now and planning for the future, you can help your customers make smart investments while securing your own competitive advantage.

Let’s Plan the Road Ahead
The road ahead is clear for businesses ready to invest. By helping your customers plan for equipment purchases now, you’ll be prepared for the inevitable surge in demand driven by rate decreases.

Get ahead of the competition and start planning your customers' equipment investments today. Contact us today to explore financing options to help your customers maximize the benefits of rate cuts and year-end tax advantages.