The equipment your company uses can make or break your business. Business owners know the importance of having the latest tools of the trade. However, the costs associated with purchasing high-quality equipment can be expensive, especially for startup companies. Fortunately, equipment financing can help.
Regardless of the size of your company, buying equipment will take away thousands of dollars from your much-needed working capital. Equipment financing lets you spend your working capital elsewhere by providing separate funds for equipment purchases. Whether you need heavy machinery, data processing equipment, computers, printing machines, or vehicles, equipment financing can help.
1. No Need for Collateral
Most lenders don’t require you to pledge any personal or business assets to secure the loan. This way, you can keep your costs at a minimum while purchasing new equipment for your company. Cash flow is crucial for a small business and lenders know that. For this reason, they usually cover the entire cost of the equipment upfront. But keep in mind that the terms of the loan depend on several factors, such as revenue, credit score, type of equipment purchased, and more.
2. Better Cash Flow and Expense Management
Once you receive the funds for new equipment, most lenders require you to pay regular monthly payments. The fixed payments help business owners manage cash flow and make a budget for monthly expenses and unforeseen expenditures. If the time comes when you need to replace existing equipment or pay for unexpected costs, you’ll have the necessary funds at hand.
3. Apply for Other Types of Loans On Top of Equipment Financing
Did you know that most startup companies lose money in the first two to three years of operation? For this reason, small business owners need to have access to other sources of funding, other than equipment financing. Fortunately, equipment financing allows you to do just that. When your funds are running low, you’ll need to apply for business loans to cover daily expenses, as well as marketing, payroll, inventory, and more. You can apply for a business loan from banks or from alternative lenders.
4. Snag the Latest Technology
Technology is continually evolving. The new technological trends emerging in your industry will affect small businesses, whether you like it or not. Tablets, computers, and phones become outdated; new software for managing inventory gets invented, or your current point-of-sale system needs an update. Equipment financing enables small businesses owners to access the latest, most efficient technological advancements specific to your industry. By updating the software or the apps you use, you will positively impact your company’s productivity as well as improve business operations.
Apply for Equipment Financing Today!
Almost every type of business needs certain equipment for daily business operations. Which is why equipment financing is one of the most popular funding options among small business owners. SMB Compass offers small business loans to companies all across the United States.
We have a team of trusted financial experts ready to answer your questions and steer you in the right direction. Simply call us today at (888) 853-8922 or email us email@example.com we’ll be happy to speak with you.