Ways to Finance Your Equipment Needs
You will definitely need the right equipment on hand if you want to operate a successful business. The equipment will help you serve your clients. If you don’t have the cash up front to purchase the stove, fridge, computer, or other common business equipment, you might have to look for a financing source that won’t compromise your profits.
Instead of waiting for your profits to catch up to your needs of equipment, you can use a couple of popular financing methods utilized by business owners nowadays. Today, we’re going to share with you the finance options that you can choose for your business, from P2P loans to equipment financing Alberta.
One financing method you can use is a P2P loan. This is especially true if you don’t want to take out a loan from a credit union or bank. This form of financing involves borrowing cash from family members, friends, or other businesses so that you can purchase the things you require for your business.
You can avoid a leasing company or bank as an intermediary if you choose this financing method. Also, you’ll directly deal with the individual loaning you the money. If you lack the references or credit to be approved for a lease or loan, then this method is an ideal choice.
Short Term Loans
If you’re able to take on financing that might come with a bit of a higher interest rate, then requesting a short term loan from a lender might also be your choice. Short term loans are a practical option if you have to purchase equipment, but don’t want to pay back a loan that extends the usability or life of the items you want to buy.
Also, you can prevent tying up your profits for a longer period since you’re paying off these loans faster. You can reclaim the income of your business as your own again after you paid off the loan.
The SBA (Small Business Administration) might be able to help you when it comes to financing your equipment. However, you’ve got to meet particular qualifications. Usually, the SBA extend either a short term loan or a revolving line of credit to business owners who have been running the business for 1 year or more.
However, a couple of businesses that have been open for a shorter period might still qualify for financing. You might be recommended to call your local SBA office if you have to purchase new equipment for your business. This will help you know if you’re qualified.
You can still get the needed equipment if you lease them. This is especially true if you really need the equipment but don’t have the money to purchase it. There are a couple of ways where equipment leasing can work in your favor.
You don’t have to take on another line of credit since you’re leasing instead of purchasing. Also, you can enjoy particular benefits such as maintenance, delivery, and set-up if you lease the equipment. Leasing can be a practical choice if you need the equipment now to serve your clients.