It may seem like your outdated equipment is only doing you good, but the opportunity cost of not updating it could be the difference of thousands of dollars. Here are things your current equipment could be costing you.

1. Time

Machinery, or other equipment, is likely the lifeblood of your company. If your outdated equipment is slow to operate, breaking down often, or takes forever to load, it’s time to upgrade. All that collective time lost per day results in less jobs completed and less money in your pockets. If low efficiency is an issue due to your outdated equipment, you could be missing out on thousands of dollars per month. Not to mention, a post-COIVID-19 world has made many industries focus on using more digital processes, making customers expect faster turnaround times.  Save yourself (and your customer) some time by investing in faster, more efficient machinery.

2. Money

This is an obvious one, but here are some clear examples. Imagine a coffee shop with a POS system that keeps failing, forcing everyone to pay cash. They’ll probably have to turn away a lot of customers. A gym that won’t replace their old cardio equipment will probably lose business to the gym down the block that has newer (and cleaner) equipment. A printing shop may not get enough prints done if their printers are slow and they may lose business if they can’t provide the latest printing techniques. No matter the type of business you’re in, good equipment is vital to success. Make sure you’re not watching dollars fly out the door when the price of new equipment is far less than the revenue it would bring in within the first year.

3. Cost of Outdated Parts

If you’re still using equipment you acquired in 2010, it’s likely that getting your equipment fixed will cost more because the parts needed won’t be readily available. Lack of availability leads to unknown and often lengthy equipment downtime that slow production and can harm your business. Just because the equipment can run forever doesn’t mean it’s saving you money. In fact, the cost to maintain the equipment could be costing you more than making a payment to finance a new one that would bring in more money.

The takeaway? Don’t hold on to old equipment with the misconception that not upgrading is saving you money. Sure, it wouldn’t be recommended to buy equipment unnecessarily, but regularly upgrading your equipment is regularly upgrading your business, and that’s something that every business owner should strive for.

If you’re looking to update your equipment and need funds, a direct lender like American Capital Group can help you get what you need at the *Lowest Payment, Guaranteed.