Starting a new construction company or running an existing one is not particularly easy, as business owners for example, need to assemble a fleet of heavy machinery, which often requires a lot of investment in monetary terms. Small businesses in particular, often struggle with cash flow, with studies revealing that more 60% face cash flow problems every year.
Businesses in the construction industry often resort to an equipment loan to finance their operations and get the equipment and machinery they need to grow their companies when they are short on cash.
Businesses that use equipment loans
Businesses across different industries can use equipment loans. Some examples of these use cases include Construction companies, Farming businesses, Auto body shops, and Shipping companies. Other possible users of the loan are Healthcare providers, Restaurant businesses, Breweries, manufacturing companies, IT companies, and Creative agencies.
Factors to consider when selecting an equipment loan
There are several factors to consider when shopping for any kind of small business financing vehicle, and equipment loans are not an exception. Some of the factors to look out for are the specialty of the lending institutions, the size of the loan, required qualifications from the lender, and the interest rates charged on the loan. Other factors to consider are the speed of funding and loan terms.
Pros of equipment loans:
Cons of equipment loans
There are several other funding options available for business owners that find equipment loans unsuitable. Some of these alternatives are traditional term loans, business lines of credit, loans from the SBA, and selling equity.
Media ContactCompany Name: Funding Box CompanyContact Person: Viola D. HayesEmail: Send EmailAddress:4450 Elmwood Avenue City: PhiladelphiaState: PA Country: United StatesWebsite: fdbox.com