All businesses need equipment to operate and may need equipment loans sooner than expected.
The cost of equipment is one of the largest expenses for entrepreneurs to budget for when opening a new business. Most new business owners make a large initial investment in equipment and expect that investment to serve them for many years to come. With normal wear and tear and proper maintenance, they assume they won’t have to consider that expense again for a number of years. Yet, new businesses can find themselves in a position that requires them to reinvest in equipment sooner than they anticipated.
The biggest reasons businesses need to reinvest in equipment are due to shifts in business focus, and changes in technology that require businesses to upgrade in order to stay competitive. Technology is moving at lightning speed and many businesses are finding their equipment obsolete before they become worn out.
This harsh reality can put a substantial financial strain on a business whose budget doesn’t allow them to purchase new equipment for several years. Business loans from traditional banks can be hard to qualify for requiring long application forms, high credit ratings and sometimes even personal guarantees.
There are private lenders, however, who are will to give equipment loans to serve a variety of industries and equipment needs.
Manufacturing Equipment Loans
The productivity of your manufacturing equipment can make or break your business. Smooth operating and efficient production equipment can bring your manufacturing costs down adding to your profitability. Non-bank lenders are willing to give equipment loans on manufacturing equipment with very little paperwork if your business has a history of healthy monthly deposits into your business account.
Restaurant Equipment Loans
It is no secret that the restaurant business is a challenging business. Some new restaurants find that their menu and or atmosphere of their brand new restaurant are not connecting with their intended audience and a quick shift in concept is just the thing to get them on track. Some statistics show that as many as 60% of business go out of business in the first year. A clear indication that the concept didn’t match with the tastes of the community. A quick equipment loan
in this situation can help keep a restaurant from closing its doors.
Computer Hardware and Software Equipment Loans
Nowhere in business does equipment become obsolete faster than in high tech equipment such as computer hardware and software. If you are in a technology-driven business, it may be necessary for you to upgrade your equipment much faster than you ever anticipated. This is true for computer hardware and software but can penetrate into all areas of technology.
Construction Equipment Equipment Loans
If you are a contractor you need heavy equipment and materials to get the job done. But all too often your upfront costs are not covered by deposits from your clients. You’ll need equipment loans to finish the job so you can get paid but you also need the flexibility of allocating those funds where you need it. Equipment leases don’t often allow for funds to be allocated to materials and supplies and are restricted to equipment. If you need more flexibility of how you allocate your funds a non-bank loan is a better option for you.
Vehicles Equipment Loans
If your business is growing fast, more delivery vehicles may be just what you need to get your product to market. Talk to your accountant about whether leasing vehicles or getting equipment loans to cover this expense makes more sense for your business. Old, worn out, unattractive or even dangerous vehicles can create a negative impression of your business as a whole.
Equipment loans can have more flexibility in the allocation of funds for your business than equipment leases and bank loans. Non-bank equipment loans can also have the added benefit of closing much faster, in as little as 72 hours versus bank loans that can take months to close, and they can be had with very little paperwork, usually a one-page verification form. If you need unexpected equipment for your business find out if equipment loans from iBank
are the right tool for your business.