Growing Your Business With Equipment Financing

Benefits of Equipment Financing for Small Businesses

Investing in modern equipment can streamline your operations while increasing overall productivity. Additionally, quality machinery and equipment reduce downtime and maximize efficiency. Learn more about some benefits equipment financing can provide your small business.

Preserves Your Working Capital

Working capital, the difference between your business’s current assets and liabilities, represents the money available to cover day-to-day operational expenses and other short-term financial obligations. In terms of working capital, your assets may include the following:

·         Cash or cash equivalents available for everyday transactions

·         Accounts receivable

·         Inventory

·         Short-term investments that can quickly be converted into cash

·         Prepaid expenses

On the other hand, liabilities may include:

·         Accounts payable

·         Accrued expenses

·         Unearned and deferred revenue

·         Short-term debts

·         Rent or lease payments due within this fiscal year

Equipment financing can help preserve your working capital, preventing your business from depleting cash reserves. This type of small business loan also gives you the freedom to use your working capital for other essential needs.

Flexible Financing Terms

Equipment financing terms can often be tailored to match the unique needs of your business. These personalized financing solutions align with potential budget constraints and growth plans. Additionally, equipment financing repayment plans allow you to pay the loan off during the useful life of the equipment. Certain equipment financing agreements offer small businesses the option to upgrade to more advanced equipment at the end of the initial financing term.

Gives Your Business a Competitive Edge

New equipment can have a significantly positive impact on customer experience. Here are a few examples of how equipment financing can help small businesses grow:

Restaurants

New kitchen equipment can help restaurants achieve faster and more consistent food preparation, decreasing customer wait times. Additionally, upgraded POS systems can allow diners to place orders online or while inside your establishment before interacting with a server. Depending on your business model, your restaurant can implement a customer loyalty program with CRM software, personalizing customer experience while incentivizing them to become repeat customers.

Auto Body Repair Shops

Equipment financing can give your auto body repair shop access to more advanced technology, providing customers with digital updates on the repair process. Investing in newer equipment can also help speed up the repair process without sacrificing quality. Offering pickup and delivery services by financing a tow truck is another way to bring in new business.

HVAC Contractors

New HVAC equipment can enable contractors to expand their offerings, perhaps providing services like duct cleaning and indoor air quality solutions. Additionally, equipment financing allows HVAC contractors to strategically manage their assets, contributing to long-term profitability.

Equipment Financing Through Fairway Funding

At Fairway Funding, our network of trusted lenders gives all types of small businesses easy access to customizable equipment financing options. Contact us today so we can begin matching you with the ideal lender for your business.