When business owners face slowing sales and stagnant growth, the cause is often a lack of capital.
Without ample working capital, companies can’t seize opportunities, because they lack funds to invest in equipment or facilities that will drive growth.
Certain industries are capital intensive. Their growth and competitiveness are fueled by investment in equipment and technology.
A lack of working capital could starve innovation and leave a business with obsolete equipment and inefficient processes.
These six industries in particular can benefit from capital investment and equipment loans provided by a small business lender like Stearns Bank.
A small business loan for a farmer can have a great impact on the operation’s cash flow and income. It can assist them in purchasing the machinery and equipment needed to improve efficiency.
The equipment they purchase includes things like tractors, combines, calf feeders, manure spreaders and more. Farmers usually look to set up seasonal payments when utilizing equipment financing. This allows them to match up their equipment purchases with incoming cash flow.
Due to an ever-improving housing sector, construction equipment continues to be in high demand. Outside of the housing industry, construction companies that use heavy equipment in highway and street construction, excavation and concrete can definitely benefit from equipment financing.
It not only can benefit a project, but it boosts productivity. Financing can provide construction companies with needed equipment at affordable prices that fit into their budgets.
Investing in the latest medical equipment for diagnosis and treatment is critical in the healthcare industry. But doing so means practices must be innovative and find the right financial fit. Equipment loans are frequently used in the optical, dental, chiropractic, veterinary and urgent care industries.
Whether a chiropractor needs the latest laser or a veterinarian needs a mobile van, an equipment loan enables a medical practice to provide the services demanded by patients and consumers.
Restaurants require many different types of equipment to operate at a high level. The type of equipment a restaurant owner has usually dictates the type of service they provide to customers. Restaurant owners can benefit from equipment financing when they’re looking to expand, remodel or start a franchise.
The woodworking industry uses advanced technology for precision measurement, cutting and fabrication. Hand tools have been replaced with CNC (Computer Numerical Control) machines with computer software and interfaces.
When CNC machines are set up and used properly, woodworking businesses reap immediate dividends in efficiency and profit. When small woodworking businesses use equipment financing for upgrades such as a CNC machine, they are investing not only in the present, but for future growth.
The transportation industry varies from trucking to express delivery services. A Fed-Ex contractor, for example, buys and maintains vehicles for deliveries to homes and businesses. Having a business line of credit, or working capital from an equipment lender, can help businesses respond to consumer demand while expanding their business’s reach. Financing equipment can also help improve their reputation with customers.
Many types of businesses can benefit from equipment financing.
In fact, any type of business that utilizes equipment daily can benefit from financing.
Equipment financing can be a strategic asset to beat the competition or respond quickly to changes in the market. No matter what, having updated and reliable equipment for your business can have many advantages.