There comes a time when every business owner is forced to figure out how to pay for new machinery and equipment or renovate or repair older models.
Even when money is plentiful, smart business owners are hesitant to tie up so much cash in large-ticket expenditures. Let’s say a construction business owner bought a new excavator by putting a large chunk of the company’s available cash down. Unfortunately, a week later, there’s an accident on a worksite and lawyers get involved—making it that much trickier to absorb legal expenses because cash is tied up in the excavator.
When money’s tight, on the other hand, small business owners don’t have the luxury of being able to cover equipment-related expenditures out of pocket. In these situations, decision-makers tend to look to outside sources of financing that usually come in the form of equipment loans.
Very simply, equipment loans are financial vehicles that small business owners can use to acquire new machinery or repair and renovate older equipment. For example, the owner of a medical practice might use an equipment loan to buy new medical technologies in order to deliver a higher level of care to patients. Or the owner of a construction company might use the same kind of loan to renovate a fleet of older construction machinery.
Have you been worrying about how you can get the equipment and tools you need to take your business to the next level in 2018? If so, an equipment loan may be just what the doctor ordered.
Equipment loans provide businesses with a number of benefits, including:
- Better cash flow. The money in your business’ bank account stays there. Use that cash to cover unforeseen expenses or invest in other mission-critical areas of operations (e.g., marketing) that don’t carry enormous price tags.
- They’re easy to obtain. Equipment loans tend to be easier to obtain than traditional business loans—particularly when you apply for one through a non-bank lender. This means that you won’t have to spend a ton of time applying for a loan you’re unlikely to get in the first place. Believe it or not, the entire application process can be wrapped up in 15 minutes. Once you’re approved, money can show up in your bank account in as fast as 24 hours.
- Increased productivity. Let’s say you run a small marketing agency and it’s been some time since you invested in technology. Your employees are relying on eight-year-old computers to do their jobs. Everything moves slowly as workers are tied down with legacy applications and clunky networks. Now, let’s say you apply for an equipment loan and overhaul your entire tech infrastructure. Once everything is configured, your team gets back to work. Productivity shoots through the roof—strengthening your bottom line. With new equipment at your service, your company will become more competitive and produce better work—particularly if your rivals have yet to modernize their tools and machinery.
- Happier workers. Anyone who’s had to work with legacy equipment knows how frustrating the experience can be. You know how the machinery should be working. Instead of moving forward with projects at a steady clip, you’re forced to prove how patient you actually are. On the flipside, with new tools and machinery at your disposal, work is easier—which makes employees happier.
- Improved credit. Pay back the installments on your equipment loan when they’re due and watch your credit score improve over time. The better your credit score is, the easier—and cheaper—it will be to borrow money in the future.
Are you looking for 2018 to be a breakout year for your small business? Time is of the essence.
If you’ve been thinking about buying new equipment or renovating existing machinery but don’t have the money on hand to cover those expenses, consider applying for an equipment loan from a non-bank lender. With a new fleet of machinery in tow, your workers will be able to conquer more ground in less time—all without breaking their backs. Ready to solve your equipment needs today? Apply for a loan!