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When To Finance Your Inflatables

Choosing to finance your inflatables can be a viable option, as purchasing can be a hefty upfront investment. However, this isn’t always the clear-cut best option for party rental professionals. Financing has its own set of pros and cons, as well as some situations where it makes sense. 

Pros of Financing
The biggest positive of financing is that inflatable purchases can be made paying less upfront. This in turn can preserve your party rental company’s cash flow to other pressing needs, such as marketing, transportation, storage, cleaning supplies, and other necessary tools. Not having an upfront payment also means financed inflatables can start generating ROI quickly rather than waiting for the needed funds for a purchase. 

Cons of Financing

Of course, additional costs can offset the reduced upfront payment. For instance, interest rates and service fees can easily result in financing costing more than just buying upfront. Some of these fees are mandatory even if you pay off the loan early. Individuals with a poor credit score could see their fees go up to 40% of the total cost of the inflatable purchase. This long-term financial commitment can occasionally restrict a party rental company’s long term growth potential.

When To Use Financing

Financing can be a good option during peak season, when party rentals tend to have their strongest cash flow. Using financing to acquire inflatables intended as upgrades or replacements to current inventory benefit from the immediate nature of financing. In general, financing tends to be used when a party rental business needs to spread out the costs of purchasing a bit more.

Knowing when to finance your inflatables is a complex decision depending on the individual’s financial status. The best advice is for each individual to apply, read over the contract and understand the fees. We also recommend checking with multiple financial institutions to make the best decision. Have you had experiences financing your inflatables? Let us know!

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