In the ever-evolving business landscape, finding the right financial approach is crucial for the growth and success of any organization. Whether you’re a startup looking for funding or an established business seeking ways to optimize your financial resources, one of the biggest challenges SMEs face is securing adequate financing to support growth and operations.

SMEs can adopt four smart financing strategies to overcome this challenge and thrive in a competitive business environment.

Build a Strong Financial Foundation

Before seeking external financing,  SMEs need to establish a solid financial foundation, which includes maintaining accurate financial records, creating a realistic budget, and understanding the cash flow patterns of the business. You can make informed decisions by having a clear picture of the business’s financial position.

Explore the Benefits of Section 179

The IRS tax code Section 179 deduction is a way to reduce the total cost of new equipment and machinery by enabling the buyer to claim total depreciation in year one. This deduction, also known as first-year expensing, is a write-off for equipment purchased in the year you placed it into service.  This tax break makes it more affordable for small companies to buy business equipment, such as office furniture, vehicles, computers, machinery, and other tangible capital investments, by allowing businesses to deduct up to $1 million per year in qualifying business equipment purchases from their taxable income.

Establish Relationships with the Right Financial Institutions

While banks have long been the go-to source for business loans, capital financing companies are often a better choice for SMEs as they typically have more flexible eligibility criteria and can better understand the unique challenges faced by small businesses. Capital financing companies offer a faster and more streamlined application process than traditional banks.  They understand the urgency of small businesses’ financial needs and aim to provide quick decisions and funding. This efficiency allows small businesses to access the capital they need in a timely manner, enabling them to seize growth opportunities or address urgent financial challenges.

Focus on Sustainable Growth

SMEs should adopt a sustainable growth mindset when it comes to financing. It’s essential to strike a balance between short-term financial needs and long-term growth objectives. For example, rather than utilizing cash on hand to purchase brand new equipment that will quickly depreciate, financing or leasing the equipment allows businesses to preserve capital and allocate resources more efficiently towards other growth initiatives, such as research and development, marketing, or hiring additional staff.

Smart financing strategies are crucial for SMEs to thrive in today’s competitive business landscape. It is important for SMEs to assess their financing needs continuously, adapt to changing market conditions, and seek professional advice when necessary. With the right strategies in place, SMEs can unlock their full potential.

Contact Commercial Capital Company today if you’d like to discuss financial solutions for your growing business.


Secure the equipment financing you need to propel your business forward.

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