The #marketing implications of rising interest rates and the reinvigoration of 179 #EQUIPMENTFINANCE

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Rates are finally on the rise. ZIRP (Zero Interest Rate Policy) buoyed the economy well through the crisis, but was probably employed for far too long.  Section 179 was pushed to the brink, but has returned nicely to a more substantial—and seemingly long term benefit. So what does it all mean for equipment finance sales? GET TO WORK!


After years of being told rates are on the rise…they are really on the rise. And while the impact of 25bps is pretty minimal, many customers may not understand the short and long term impact of rising interest rates on their business. Wherever there is a gap in knowledge in the market—insert yourself! You guys are the unequivocal experts on the correlation of debt and equipment need. So get yourself out there. Write an article or 10, demonstrating your expertise. Help them understand that while 25bps may not wreck the cash flow today, quarterly FOMC meetings have the potential to push rates up as much as 1% in the next year. Help small businesses understand that layers of MCAs are about to become a huge challenge and never to acquire equipment with that capital. Help medium sized businesses understand that with rising interest rates, it may be time to look at operating leasing as a component of their strategy again. Help large businesses finally get to work hedging rising rates with swaps or potentially shorter term money. Whatever you do…HELP! Be the expert you are and help explain options in these changing times.


Well Congress finally got off their posteriors and put seemingly lasting legislation in place around 179. Higher limits, bonus depreciation and a reasonably long term commitment to the tax benefit—all good. But it can only be a tool for sales if you use it. Vendor folks should be working with vendors to create messaging, co-branded marketing campaigns, information pieces, additions to websites and more to stimulate the thinking of equipment purchasers. All of you should be holding webinars (cheap, easy and a great tool for leads) to explain the implications and give examples of the benefit. Even partner with a CPA firm on the webinar for additional credibility. Calculators are a good thing. Stick one on the website that emails them the result (and you get the email for future use and sales follow up). By the way, a 25bps rise in rates could be squashed by potential savings from 179 in certain situations. SHOW THEM!

Be an advisor—an expert—not a rate-based deal chaser.

It’s 2016. Let’s go.

If you ever wanna chat…give us a holler.


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