Equipment financing companies offer businesses something slightly different when it comes to helping them secure funding. What these companies specifically do is offer funding solely for new equipment for the business. This means that your company can free up capital which it was going to spend on equipment, to keep for other aspects of the business. Furthermore using these funds you would still be able to get lines of credit elsewhere. Another reason why many will look towards equipment financing is that they are much more likely to be approved, based on the fact that the money loaned is going directly towards a tangible asset.
So what exactly kind of businesses could benefit from this kind of financing? Let’s take a look.
As anyone in the restaurant business will tell you, equipping a kitchen is no small ask and that is why they will often need funds to help them get their kitchen equipment up to scratch. The cost of ovens alone are enough, and that is before you factor in any additional equipment such as pizza ovens to support the business. For this reason this is often an industry which will seek out equipment financing.
Another type of business which requires extra funding to get set up are adventure companies, which of course have to rely on pretty pricy equipment in order to get things off the ground. Whether it be the buying of ATVs, jet skis or even an airplane, there is absolutely no doubt that these kind of companies desperately require some additional support in order to offer their customers the very best experience. These companies will often rely on the specific financing for these kind of vehicles.
No matter what you happen to be manufacturing, there is absolutely no doubt that getting things set up and off the ground is going to be expensive. The sheer volume of machinery inside these factories is incredible and that is why they depend on this kind of financing in order to get going. One thing which these companies in particular can count is the fact that those machines are incredibly powerful and owing to the volume of output it isn’t long before they have paid for themselves more than once over.
In recent years we have seen microbreweries become incredibly popular and if we take a look at just some of the equipment which they use in their industry, the costs are pretty high. Most microbreweries are small operations and they simply don’t have the funds to invest in all of that equipment. Having said this, in order to get set up they are required to invest in so much of the equipment otherwise they just can’t produce what they would like to. This is yet another industry which relies on this kind of funding to get things rolling.
This is a fantastic option for businesses to consider when it comes to getting themselves started.