Businesses are quickly adjusting to an unprecedented situation caused by the global health pandemic. Small businesses, in particular, are actively preparing for an extended period of physical distancing and partial store openings. This means updating their websites and social media profiles, maximizing their e-commerce capabilities, and purchasing materials and supplies in case of unexpected shortages.
Given what business owners have to do to continue operating in some capacity, they will need some help with business funding. Loans are always an option, especially for companies that need to expand their facilities or upgrade their equipment to cater to the needs of their customers.
What Role Does Equipment Financing Play In Running A Business?
The July 2020 update of the MetLife & U.S. Chamber of Commerce Small Business Coronavirus Impact Poll shows that most companies give it at least six months before things return to normal. During this time, small businesses need all hands on deck and financial support to stay afloat.
Businesses can keep operations running during this period through equipment loans. These loans are particularly useful for small companies that need new equipment to meet the demands of their target market, but that currently have limited cash flow because of the pandemic or other budget constraints.
Equipment loans are similar to other loan products available on the market. The difference lies in the collateral. Since this type of financing is specifically for business equipment purchases, the collateral is the equipment itself. This makes it easier for business owners and borrowers who have no other resources to use as collateral.
How Do Businesses Benefit From Equipment Financing?
Small businesses that require new equipment should review all of their financing options, but they should pay close attention to equipment financing. It provides various benefits for borrowers.
Ease Of Application
Traditional loan applications often involve big banks, which are rigorous when it comes to their loan approvals, this process can also be time-consuming. Small businesses need to get back on their feet because of the pandemic and have no time to waste.
With equipment loans, the equipment itself is used as collateral to secure the amount borrowed. This is a benefit for many business owners who do not have other types of collateral to put up in order to secure funding.
Speed Of Funding
Even the most qualified business may have to wait weeks before their traditional loan is approved. However, when you need a piece of equipment of software now, waiting on funding can pose challenges in your business operations.
Equipment loans offer a streamlined process, simplified collateral, and a much quicker approval process.
Flexibility Of Use
Equipment doesn’t only refer to forklifts, backhoes, and excavators for contractors. It may also refer to new washing machines for a laundry shop, laptops for a company implementing remote work, tap credit card readers for retail stores, or new outdoor tables and chairs for restaurants.
Financing, therefore, isn’t limited to the common items you would see installed and used in industrial facilities. Equipment financing is flexible and can be tailored to your specific needs, terms and budget.
Better Financing Options
Regent Capital helps business owners upgrade their equipment and expand their business. Our team has a combined 100 years of experience, and we have done well over $150 million in equipment finance transactions. We have the expertise and resources to tailor solutions for your business.
View your equipment financing options today. And when you’re ready, fill out our contact form for further inquiries.