Securing Working Capital for Your Small Business in the Era of COVID-19
November 01, 2020
Nearly 79% of U.S businesses seek financial help when acquiring new equipment. So, don’t worry if you don’t have enough funds to obtain the right business equipment.
Most business tools are quite costly for small firms. But thanks to equipment financing, every business can get the right equipment, either by lease or a loan. This blog discusses the top five benefits that firms enjoy by getting equipment financing.
Some business tools can clear up your bank balances. In some cases, the money may not even be enough to cater for all equipment costs, which means that you may still not get what you want, despite using all your money.
When you utilize equipment financing, you don’t touch your working capital. Instead, you use it for other essential business needs, or rather, save it for the future. Such a decision can improve your working capital to keep your business operational for an extended period.
Technology has made it easy for businesses to get smarter and more efficient tools for their businesses. When compared to traditional equipment, modern devices are fast, reliable, and aesthetically pleasing.
Maybe you have old tools in your business, and you would like to replace them with newer ones. Equipment financing can help you get the modern tools of your choice without blowing your working capital. Better yet, the financing firm can possibly advise you on the best modern equipment which you should get to boost your business performance.
As a business owner, you probably know how a lengthy loan application can cause a mess to your firm. The situation is different with equipment financing.
On average, many lenders take a maximum of 24 hours. Loans with a large amount may take up to 48 hours due to the considerable amount of time necessary for verification and scrutiny.
That time is quite short compared to the time other loans take. Even when the lender does not approve the application, you can still get a quick answer to know what you should do next. The easy application and disbursement process is quite convenient for every entrepreneur.
Most equipment financing lenders offer 100% to the borrowers. This comprehensive financing means that you get the money, plus other services related to the equipment. For instance, if the lender helps you buy manufacturing equipment, they might also help you with financing to transport it, install it, and test its functionality.
100% financing may also include repair service and long-term maintenance costs. If you get your business tools through equipment financing, you will often have fewer struggles in handling the equipment, as you will always be sure of a reliable backup from the lender.
Entrepreneurs looking forward to getting equipment financing often don’t pay any down payment at all. For instance, if you had applied for $50,000, the lender usually gives you a loan worth that amount without paying anything. That’s a significant advantage if your business is not well off financially because you won’t have to struggle to look for the down payment.
These are just a few of the many benefits that equipment financing offers. So, don’t get stuck with the old, non-performing tools due to lack of enough funds. Try equipment financing today to grow your business.
Your business requires the right tools to accomplish your tasks more efficiently within the shortest time possible. Our company can help you buy or lease the right equipment for your needs. Contact us anytime to learn more about our small business loan services.
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