Fact: you need to spend money to make money. When you’re starting a company, that can be troublesome when you may need equipment financing.
You may not have money to spend upfront yet. That’s because you don’t have the tools you need to get to work.
All the most common start-ups need vital equipment to get enough capacity to start cash flow.
What Is Equipment Financing?
In practice and in principle, it’s the very first step to creating your business. No matter what you do, you need specialized equipment to perform your job in order to make money.
Equipment financing is borrowing money for specific pieces of equipment. That equipment acts as the collateral to the money you borrow. It’s similar to a car loan.
This is where equipment financing comes in. Here are five ways it can help you.
1. Makes It Easier to Get Your “Shot”
You have a good idea for a business. You need a shot.
Rather than going to a bank or investors, you can take your business from concept to market on your own with this banking alternative.
You still own the totality of your business. Plus, you don’t have anyone else calling shots or taking profits out of your pocket.
2. Gives You Something to Take to Other Investors
People generally like to see something tangible before they decide, especially investors.
If you’re looking to win the hearts and funding of investors, you’ll get a lot farther with them by having something tangible to pitch.
Of course, your business model needs to be solid. Having more pieces in place for a successful business before you make your big pitch increases the likelihood that potential investors will catch the vision.
3. Good Overhead
Debt is the eternal frenemy of start-ups. However, there are a few things that you must do and take on when it comes to debt.
Equipment must be No. 1 in that it’s both the first and most important thing to take on debt for. Again, you can’t make money if you don’t have the tools you need.
Luckily, equipment financing has some of the lowest thresholds of payback for what you need for your start-up. Equipment has the highest and fastest ROI of all the things you may finance for your start-up.
4. Wide-Range of Options
Equipment financing is available in just about any industry. If you have equipment needs, odds we can finance it.
At Formula Funding alone, we support many industries ranging from culinary to construction, roughly 900 and counting.
5. Funding Quick and Easy
You need to focus your time on making money, not asking for it. Look for financing companies that offer online applications, no hassle or obligation consultations, and 24-hour or fewer turnarounds. Loan sizes can be as high as $250,000.
Get Started Today
We at Formula Funding can finance certain equipment with a 6 percent interest rate, based on certain factors. We offer affordable financing and lease options aimed at the small business owner.
Contact us today to get started with making your business idea a reality.
Combining a high level of personalized service with a cutting-edge lending platform, Formula Funding delivers an unparalleled banking alternative. We offer a fast and efficient option to get your business the critical funding it needs without the red tape. We work with all credit grades, tax liens, judgments, and charge-offs – something unheard of at a traditional bank. Since 2010 over 15,000 small business owners have used our funding sources to grow and expand.