5 ways equipment financing can grow your business
Equipment financing is one of the best ways to get the equipment you need to run your business at its optimum. When business growth is a top priority but purchasing new equipment or upgrading existing equipment poses a challenge due to low cash reserves, equipment financing is your answer. In a nutshell–equipment financing is a type of loan that is acquired in order to purchase equipment. The equipment itself serves as collateral for your loan. A down payment is not always necessary depending on who your lender is and virtually any business can apply for equipment financing. It’s far easier to obtain than other business loans, and the rewards for your business can be huge. Here are 5 crucial areas where equipment financing will help your business:
1. Construction, contracting niche
Financing high-cost items such as tractors, bulldozers, and forklifts can be difficult when your accounts receivable exceeds cash in hand.. By acquiring the necessary equipment to run your business better, you can alleviate labor costs, run your business more efficiently, and branch into new areas of service.
2. Office and/or waiting room equipment.
Improve the aesthetics in your waiting room and keep your clients occupied while they wait by adding a television, water cooler, or coffee station. You can also finance printers, room dividers, bookcases, filing cabinets, or whatever else it takes to ensure the smooth running of your business.
3. Upgrading computer software and hardware
Software and operating systems are constantly being updated and improved so stay at the top of your game and one step ahead of your competitors by keeping up-to-date with the latest technology. This could be mean updating your customer relationship management software (CRM), payroll software, e-commerce, and/or shopping cart software, invoicing software, and asset management software to name but a few.
4. Vehicles and trailers
Having reliable vehicles that are regularly serviced and upgraded are important to many businesses. Does your business offer deliveries? Or do your employees have company-issued cars? Maybe you need trailers and/or trucks because you operate a dump truck or moving business? Whatever the case–financing reliable vehicles and/or trailers can help you to run your enterprise better and will oftentimes be cheaper than leasing vehicles and trailers as you will eventually own them.
5. Lastly– Kitchen and/or restaurant equipment
If you own a restaurant or are planning to delve into the restaurant industry you will need quite a bit of equipment. You may need to finance things like commercial ovens, gas and/or electric grills, food processors, refrigerators and freezers, dishwashing equipment, and more. No restaurant is complete without a great cappuccino and espresso maker, so make sure you have the best coffee in town with a good quality machine.
At Kore Capital, we are more than just a factoring company offering factoring services. We are keenly interested in the success and growth of your business and are here to help. Get in touch today to find out about our wide array of services including invoice factoring, inventory financing, equipment financing, and more.