If running a company were easy, business owners would be able to invest in equipment and machinery one time and enjoy a return on those investments in perpetuity.
Unfortunately, that’s not the case.
Even the best equipment in the world that’s taken care of thoroughly will eventually wear down. And of course, not everyone takes the best care of their equipment. Be honest: What’s the longest you’ve ever gone without getting an oil change on your personal car? How about a tune-up?
Equipment can also break down due to faulty or overused components. Freak accidents can occur as well, knocking mission-critical machinery offline unexpectedly.
When these things happen, it can cost a ton of money to bring machinery and other equipment back online—particularly when repairs need to be done right away. But as most business owners will tell you, it’s not always easy to absorb these unbudgeted expenses.
And even if a fleet of machinery beats the odds, there will still come a time when companies are forced to upgrade their equipment as new technologies and new models come to market.
When a business has to buy new equipment altogether or pay for hefty repairs to restore faulty machinery, it can be quite difficult to figure out how to finance those expenditures.
If a business has a particularly high credit limit, decision-makers could decide to use credit for all relevant charges. Do so at your own risk: If you’re unable to repay your credit balance in a timely manner, you’ll be on the hook for significant interest charges.
Instead of rolling the dice on credit, small business owners who can’t afford equipment costs out of their own pockets would be wise to apply for loans that are earmarked for equipment acquisition, repair, and maintenance expenditures. That way, these costs can be financed in an affordable and sensible way.
How exactly might an equipment loan be used? Let’s take a look.
Succeeding in the restaurant business is difficult, to say the least. In fact, 60% of restaurants fail within one year, and 80% fail within five.
Nobody opens a restaurant hoping to become a statistic. But you can increase the chance that doesn’t happen to you by securing an equipment loan. Believe it or not, non-bank lenders are willing to fund businesses to the tune of $1 million.
With money on hand, you can remodel your kitchen—which can cost as much as $115,000—thereby enabling your staff to serve up tastier food to your customers more efficiently. A new kitchen will also help you attract talented chefs who won’t work in anything less than the best conditions.
When business is going great and you want to expand your operations, use the loan to build an entirely new kitchen!
Construction costs are often prohibitively high. This causes many construction companies—and smaller ones in particular—to face cash crunches on a regular basis.
When you’re short on cash, it can seem impossible to cover construction equipment repair costs. And forget about buying that state-of-the-art new piece of machinery that competitors are using.
Secure an equipment loan, on the other hand, and it’s easier to stomach any and all equipment-related expenses.
All medical practices that wish to deliver the best level of care to their patients need the latest medical equipment on the market—it’s as simple as that.
But medical equipment isn’t cheap.
With so many expenses to absorb each month—payroll, operating expenses, insurance premiums, and more—it can be difficult for many healthcare providers to find room in the budget for new equipment.
Patients want the best care. To this end, they seek out medical practices that have modern technology at their disposal.
When medical firms can’t pay for new medical equipment out of their own pockets, they can find the money they need by securing a loan.
While the costs of running a marketing business—or any computer-based company—might not be as high as those of restaurants, construction firms, or medical practices, money’s often tight in the world of digital businesses.
Equipment loans can help here too.
Use a loan to buy new computers, mobile devices, and computing infrastructure. That way, small marketing agencies can act as though they’re much larger by producing exemplary content for their clients.
Wondering if your business qualifies for an equipment loan—and, if so, how you can go about securing it? We’ve got you covered.