If you own a small business, you might find that you will need some type of equipment and sometimes this expense will cost your business a lot of working capital. This is where equipment financing comes into play to help you cover these costs.
Equipment financing is a loan that you use to purchase equipment for your business. There are many reasons why small business owners find equipment financing appealing versus a line of credit or any other different loan. One reason is that the equipment you are purchasing acts as a collateral, depending on the lender.
Most people assume that equipment financing is solely used for heavy machinery or vehicles. The truth is that equipment financing goes beyond that and covers many different items for any type of business and industry. Today we will discuss all the useful ways you can use equipment financing for.
Vehicles: if your business needs vehicles, you can purchase delivery vehicles, company cars, and small electric vehicles.
Maintenance: this includes security systems, HVAC, parking kiosks, and other major upgrades your space may need.
Office: offices also need to have furniture and furnishings to help employees be productive. There are many furnishing that an office could use including desks, desk chairs, cubicles, flooring, filing cabinets and more.
Appliances: employees need appliances in the break room to help them take breaks and store food. Equipment financing can help with the purchase of a microwave, refrigerator, coffee machines, toaster, and more.
Software: not only can you use equipment financing for physical equipment, but also for nonphysical too that will help your business operate smoothly. This includes customer relationship management (CRM) software, accounting and bookkeeping software, invoicing software, payroll software, security software, email management and marketing programs, and more.
Point of Sale Systems: a POS system is also just as important for businesses who are in retail. These systems include cash registers, tablets, barcode scanners, card scanners, receipt printers and more.
IT Equipment: having the right hardware is important for many businesses too including computers, monitors, printers, keyboard, mouse, phones, routers, phones, and more.
There are also industry specific equipment including dental, medical, gyms, landscaping, auto repair and more.
Equipment financing is a great way to get the equipment that your business needs. There are two options you can choose from, you can either get a loan or a lease and both provide different benefits over different time frames. No matter what method you choose, be sure to do your research beforehand and compare the options to see which will be the most appropriate for the needs of your business.