Most businesses require specialized equipment to carry out day-to-day functions specific to their own operations. Some pieces of equipment are extremely expensive, and that makes it difficult for small businesses to obtain them in order to stay competitive. Equipment financing can be very important for a small business when it needs to secure important machinery or equipment, but does not have the necessary funding to do so.

How Equipment Financing Can Be Used

Financing for equipment is one of the very most common reasons that small businesses seek funding from lenders. This might be farming equipment, office furniture, PCs or computer equipment, or even restaurant equipment. Almost any type of business will need to secure essential equipment before beginning operations. As an example, a construction business probably can’t even start taking on work until it has acquired backhoes, bulldozers, excavators, drilling machines, and other heavy machinery used to perform construction tasks.

Equipment Upgrades

Businesses that have been operating for a bit longer will still have a need for equipment financing, except that it may be in the form of equipment upgrades. Given the fact that all equipment eventually wears out and breaks down, it will always be necessary to have a replacement strategy for any critical equipment used by your business. A recent survey discovered that more than 42% of all small business owners were in a situation where they required funding to secure necessary equipment.

That percentage takes in both new startup companies and established businesses, so you can see that at any given time, just under half of all small businesses are in need of equipment financing. Given the fact that this is such a universal need, more and more lenders are paying attention to the market for equipment financing, and some more innovative and creative lending options are being developed to come to the aid of small business owners.

Does Your Small Business Need Equipment Financing? 

If you need capital to finance the purchase of critical equipment, we’d like to hear from you. Contact us at LMC Alternative Business Capital so we can discuss with you the possibility of funding your equipment purchase.