Balboa Capital, a direct lender that specializes in small business loans and equipment financing, is seeing an increase in capital equipment investing by small business owners who want to take advantage of the current Section 179 tax deduction before it expires on December 31, 2020.
“A sizeable number of small business owners are purchasing new or used equipment during the final weeks of 2020 so they can expense all or a portion of the cost under the Section 179 provision,” said Kevin Umeda, Manager of Sales Planning and Coordination at Balboa Capital. “Our company has seen a strong uptick in equipment loan requests from small businesses during the fourth quarter, and we are geared up for the end-of-year rush. We have the staff and systems in place to help business owners get same-day funding of up to $250,000 to purchase equipment.”
The Section 179 tax deduction is an IRS tax incentive that allows businesses to accelerate depreciation on qualifying equipment that is purchased or financed and put into business use on or before December 31, 2020. The current Section 179 tax deduction limit is $1 million, and the limit on equipment purchases is $2.5 million. In addition, the current first-year bonus depreciation on qualifying equipment is 100 percent. Balboa Capital’s website has a number of complimentary Section 179 resources for business owners, including a tax calculator and an infographic that feature information and deduction limits for 2020. Not all types of equipment qualify for the Section 179 deduction, so business owners should consult with an accountant or a tax professional prior to making any purchases.
“Cash flow has unquestionably been a big concern among small business owners this year due to the pandemic, but it appears a substantial number of them feel confident about the economy and are ready to invest in new or used equipment,” said Mr. Umeda. “Business owners who are interested in purchasing depreciable business equipment should act now so they don’t miss the 2020 Section 179 deadline.”
Balboa Capital to Host “Broker Success” Webinar
Balboa Capital will host a free 30-minute live webinar on Dec. 15 at 2 p.m. EST to explain how third-party originators can grow their businesses quickly and profitably. The webinar, titled “Broker Success,” will provide participants with an overview of Balboa Capital’s broker program and the company’s technology-based lending platform. In addition, the webinar will cover Balboa Capital’s processes and borrowing requirements relating to equipment financing and working capital loan transactions.
“We invite interested brokers in the equipment loan and working capital loan sectors to attend our free webinar to learn how they can work more efficiently, spend more time on closing deals, and earn generous commissions in exchange for each customer they refer,” said Vicki Shimkus, Broker Relationship Manager at Balboa Capital. Shimkus will lead the webinar and be joined by Matthew Lent, Manager of Ancillary Products/Working Capital at Balboa Capital.
To register for Balboa Capital’s free “Broker Success” webinar, please visit this link on the company’s website: https://www.balboacapital.com/broker-webinar/.