Understanding where an LED sign fits into your budget can help you plan for this important investment.
Equipment financing or leasing is a smart way to pay for a new LED sign. Financing means less money up front and provides you with a manageable monthly payment. The best part is that your sign can begin delivering return on investment immediately.
Using an equipment financing lender for your LED sign can help you preserve cash reserves and lines of credit you may have already established with traditional lenders. Equipment financing typically does not require that you submit a financial statement, and lending decisions are often made more quickly than those of traditional financing options. Banks will often require a higher down payment, while a specialty lender is likely to require just a few payments in advance.
Paying for Your Sign
As you consider where the budget for your LED sign might come from, a smart place to look might be your marketing and advertising budgets. LED signs are much more than an infrastructure improvement, they are a dynamic and powerful advertising tool that is significantly more effective and more affordable than other traditional advertising mediums.
When you consider the considerable decline and shifts in newspaper circulation and radio and TV audiences, an LED sign beats them all hands down in exposure and cost-effectiveness. Many organizations have discovered that they could lower their budgets for traditional media after purchasing an LED sign, because it has proven to be so effective.
Your Watchfire dealer partner or local Territory Manager can help you calculate the return on investment (ROI) of a new sign by analyzing your traffic count, sign purchase price, cost of operation and the sign's potential as an advertising vehicle.
Certain business investments, such as signage, may qualify for depreciation and IRS Section 179. By lowering your taxable income, depreciation and Sec. 179 can dramatically cut your tax bill, freeing up cash in the short term. Consult your tax professional for more details.