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 can grow your business:
1. Construction, contracting niche
Financing high-cost items such as tractors, bulldozers, and forklifts can be difficult. It is especially difficult when your accounts receivable exceed cash in hand. By acquiring the necessary equipment to run your business better, you can alleviate labor costs. It will help to 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. This way you can keep your clients occupied while they wait. Try adding a television, water cooler, or coffee station. Or, you can also finance printers, room dividers, bookcases, and filing cabinets. Or, brainstorm whatever else it takes to ensure the smooth running of your business.
3. Equipment financing upgrading computer software and hardware
Software and operating systems are constantly being updated and improved. So, stay one step ahead of your competitors by keeping up-to-date with the latest technology. Perhaps, this could mean updating your customer relationship management software (CRM). Or, you could update your payroll software, e-commerce, and/or shopping cart software, invoicing software, and asset management software to name but a few.
4. Vehicles and trailers equipment financing
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. Note, it will oftentimes be cheaper than leasing vehicles and trailers as you will eventually own them.
5. Lastly– Kitchen and/or restaurant equipment
If you are planning to delve into the restaurant industry you will need quite a bit of equipment. You may need to finance things. FOr example, these include 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.