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 when opening a new business. New businesses often make a large initial investment in equipment and expect that their cost will be stretched over many years. With normal wear-and tear and proper maintenance; they assume this expense won’t come up again for some time – yet new businesses can find themselves needing to reinvest more quickly than expected.
The biggest reasons businesses need to reinvest in equipment are shifts in business focus and changes in technology. The world is changing at a rapid pace, and businesses are finding it necessary to upgrade their equipment in order stay competitive. Technology is also changing faster than ever before and many of today’s older models may become obsolete before they even wear out. As new technologies emerge and obsolete equipment becomes less valuable, it is critical that business owners invest in updating their infrastructure.
This harsh reality can put a substantial financial strain on a business that doesn’t have the budget to purchase new equipment for several years. Traditional banks are often the first thought for a business loan, but it can be difficult to qualify with the strict requirements, high credit rankings, and personal guarantees.
There are private lenders, however, who are willing to give equipment loans that serve a variety of industries and equipment needs.
Manufacturing Equipment Loans
The condition and performance of manufacturing equipment can have a massive impact on the success or failure of any business. Smoothly operating equipment and efficient production can bring manufacturing costs down and add to profitability. Non-bank lenders are willing to fund your manufacturing equipment loan request with minimal paperwork if there is a long history of healthy monthly deposits into the business account.
Restaurant Equipment Loans
It is no secret that the restaurant business is a challenging business. New restaurants can find that their menu and atmosphere aren’t connecting with the intended audience, and a quick shift in concept can be just what’s needed to get them on track. Statistics show that as many as 60% of restaurants don’t make it to their first anniversary, which is a clear indication that the concept didn’t match the tastes of the community. In this situation, a quick equipment loan
can help keep your restaurant from closing its doors.
Computer Hardware and Software Equipment Loans
High tech equipment, such as computer hardware and software, become obsolete faster than any other equipment. If you are in a technology-driven business, it may be necessary for you to upgrade your equipment much faster than you ever anticipated. The quick expiration applies to computer hardware and software but can penetrate all areas of technology.
Construction Equipment Equipment Loans
If you are a contractor, you need heavy equipment and materials to get the job done. And all too often upfront costs are not covered by deposits from clients. You’ll need equipment loans to finish the job and get paid, but you also need the flexibility of allocating funds where they are needed most. Equipment leases often lack the ability to earmark funds for materials and supplies and restrict use to only equipment. If you need more flexibility on how you distribute 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 to determine if leasing vehicles, and getting equipment loans to cover this expense, makes sense for your business. Old, worn out, unattractive or even dangerous vehicles can create a negative impression on your business as a whole.
Non-bank equipment loans may be more practical for your business than traditional bank loans. Equipment loans can have more flexibility in the allocation of funds than equipment leases and bank loans. Non-bank equipment loans also have the added benefit of closing much faster – in as little as 72 hours versus bank loans that can take months to close. They also have 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.