Finding equipment for a small business is simple. There are electronics and office supply stores on almost every corner of big cities. There are online firms that can deliver equipment overnight. The problem is finding small business equipment financing. Without money, there's no equipment. Without equipment, there's no business.
So what's a small business owner to do? He can't get corporate credit at the bank because his operation is too small. He doesn't want to max out his credit cards for what could be a substantial purchase. But he doesn't have the cash on hand to lay out in one lump sum. After all, he has a payroll to meet, supplies to buy, and utility bills to pay.
The answer could be as simple as contacting the equipment vendor directly and asking them to finance the purchase. Many vendors offer small business equipment financing in the form of leases. These can be of great benefit to a new business that is just starting out. It allows that business to not only get the equipment that it needs to operate, but it also gets that business started on the road to establishing credit. And healthy credit is the sign of a healthy business.
But perhaps the vendor does not offer financing services to its customers. What is the next option for a small business owner to explore? Credit cards could be the answer. A credit card issued in the name of the business often carries a credit limit high enough to accommodate such purchases. If it does not, then a phone call to the credit card company could get that limit raised.
But what if the credit card won't raise its limit or it charges too high of an interest rate for the comfort of the business owner making such an expensive purchase? Maybe the bank is the answer after all. Maybe the business has a healthy enough accounts receivable balance and an efficient collections team that it is a more attractive risk than the banker originally thought.
Private investors might be willing to subsidize the purchase of equipment. In fact, there are individuals who specialize in small business equipment financing. They enjoy being able to help small businesses expand their operations. But a business owner should take care with the details of a private loan. Private investors are known for their desire to keep a close watch on their investments. Although they probably won't show up at the office or factory every morning to physically watch what's going on-although some might-they may expect regular updates on the status and health of the business. They may insist on taking part in the selection of the equipment that their money is financing. They might feel that their money buys them the right to advise the business owner on how to manage his operation.
So there are many options for small business equipment financing. Equipment and credit are important. They keep small businesses all over the country running at their maximum potential. And the lack of either can cause a company to falter quickly. Making wises decisions in how to acquire both is an important responsibility for today's small business owner. Important and simple... but never easy. Research and outstanding management skills are keys to succeeding at getting the financing that will buy the equipment that will keep a small business up and running for years to come.
Corporate Credit Concepts specializes in Small Business Equipment Financing for New Business. For more information about Small Business Equipment Financing and how it might benefit your business, please CLICK HERE for a free phone consultation.