Financing equipment is a great way to build commercial credit, increase cash flow, and ensure that you get the equipment needed to run your business today. When a business owner secures a commercial loan, three critical effects result from that deal, helping to strengthen financial security.
By Keara M. Piekanski, MBA and Michael McElroy, CLFP

During 2022, a hot topic of conversation for business owners (and for U.S. residents in general) is rising rates. From increases at the gas pump and grocery store to rising business expenses, our country is experiencing economic impacts not seen for nearly 40 years. Today’s business owners are grappling with challenges some retired owners did not experience throughout their careers. So how can equipment financing help ease some of today’s financial burdens for small to medium-sized businesses? Financing equipment is a great way to build commercial credit, increase cash flow, and ensure you get the equipment needed to run your business today. When a business owner secures a commercial loan, three critical effects result from that deal, helping to strengthen financial security.

OCS finances waste and sanitation equipment for customers all across the U.S. Images courtesy of OCS.

#1: Building Commercial Credit
There is a misnomer circulating with some business owners that all debt is “bad.” However, debt is sometimes necessary to run a successful and sustainable business. By meeting new people and speaking with customers across different
industries, understanding their pain points, and helping develop solutions for business challenges, we have learned that in some industries, cash is king, but many business owners who rely on cash miss out on building commercial credit.

There have been situations where customers have been in business for many years yet still lack a strong credit profile. When it comes time to purchase a large piece of equipment, and either cash reserves are running low, or the equipment is simply beyond their means, sometimes they cannot get approved for a loan or are quoted a high-interest rate based on their weak credit profile.

Financing equipment falls under the “good debt” category and enables a business to manage finances more effectively and to leverage prior reported borrowing. This debt occurs when a loan can potentially increase the business’ net worth. The sooner a business begins to establish commercial credit, the better.

Another benefit of taking out a commercial loan is that it will not impact the business owner’s personal debt-to-income ratio; a business purchase will not be tied to or impact a private investment when applying for a personal mortgage or auto loan.

#2: Increasing Cash Flow
In early November, the Federal Reserve announced another rate increase to thwart inflation. This increase marked the sixth time the government agency raised rates in 2022, with the target range for the federal funds rate between 3.75 to 4 percent. There is no good indication of when rates will even out, yet businesses continually navigate daily expenses like payroll, equipment maintenance, fuel, and utilities.

Owners can keep cash on hand and stay operational amid expense increases by obtaining a commercial loan for equipment purchases—trucks, carts, containers—to continue carrying cash on hand. According to a JP Morgan Chase study, most small businesses only hold a cash buffer large enough to support 27 days of their typical outflows, which means having the funds for an unplanned or significant cash purchase might be unrealistic. The answer to finding the balance between abundant and insufficient cash flow could be commercial financing.

We often use the word ‘unexpected’ when discussing financial planning. Typically, that word has a negative connotation, but it could also mean opportunity. We have had the pleasure of financing equipment for customers after their business landed a new contract. They needed a piece of equipment to complete the job, and financing was the only way to procure the tools to cash in on their new business deal.


OCS’ customer REA Landscape Management used commercial financing to purchase this new dump truck. Image courtesy of Rea Landscape Management.

#3: Procure Equipment Today for Business Growth Tomorrow
Along with rising rates, it has also been challenging to procure equipment in 2022. According to a Goldman Sachs survey, delays and backlogs remained a top economic concern for small-business owners. Even buying used is more expensive than in previous years. According to the Consumer Price Index, used cars and trucks have increased to a rate of 7.18 percent since September 2021. So how does a business get the equipment they need when they need it?

Always have your financing pre-approval ready. It is a competitive marketplace, and buyers who are already pre-approved look more appealing to a seller. Many customers are currently experiencing delays when seeking out new equipment due to backorders. Used equipment models are in high demand, with interested parties often entering bidding wars. If your business is in the market for equipment, make sure you have a financial plan in place before shopping around. In other words, know how you will pay for your equipment before contacting a dealer or private party seller.

A Bonus Benefit of Financing
One perk of purchasing equipment before the end of December is taking advantage of Section 179. This section of the IRS Tax Code allows small to medium-sized businesses to deduct the total
purchase price of qualifying equipment bought or financed during the tax year (the end of the day on December 31, 2022), subtracted from the businesses’ gross income.

Section 179 allows businesses to buy both new and used machinery and vehicles. For 2022, the deduction limit stands at $1,080,000, the spending cap is $2,700,000, and the bonus depreciation is 100 percent. If you are interested in learning more, contact your tax advisor regarding the specific impact on your business and determine whether a purchase before the close of 2022 makes sense.


Financing trucks, carts, and containers is a great way for businesses to conserve cash flow and build commercial credit.

How Can We Help?
Finance professionals understand that businesses across the U.S. are feeling the ripple effect of rising costs and equipment deficits. With additional rate hikes on the horizon, people are still determining when pre-pandemic market conditions will return. Over the years, finance companies have experienced (and survived) multiple recessions, a global pandemic, and major shifts in various industry environments. We are here to help businesses in the waste and sanitation industry evaluate financing options for fueling business growth, even during uncertain times. We make it possible. | WA

Keara M. Piekanski, MBA, is the Director of Marketing at Oakmont Capital Services (OCS), a direct, independent commercial equipment finance lender. She has nearly two decades of experience in B2B and B2C marketing, working in both the agency and corporate worlds. She has developed strategic plans, implemented multi-media tactics, and built marketing teams that have driven business growth. At OCS, Keara leads, manages, and directs the overall corporate marketing strategy. Keara can be reached at [email protected].

Michael McElroy, CLFP, is Director of Business Development at Oakmont Capital Services. Michael has established multiple national manufacturer financing programs and created unique solutions to help vendors sell more equipment. His customers
appreciate his commitment to personal service and his desire to form long-term relationships in the industries that he serves, including waste and sanitation. Michael can be reached at [email protected].  

The OCS team in both Pennsylvania and Minnesota are passionate about helping fuel business growth for their customers and partners. For nearly 25 years, Oakmont Capital Services has helped owners across various industries—including waste and
sanitation—finance the equipment needed to run small to medium-sized businesses. OCS provides fast, easy, flexible, and reliable commercial financing with a streamlined, tech-forward approach.

Want a quick “back of the napkin” calculation on how Section 179 can benefit your business? Check out OCS’ Section 179 calculator at