Any loan that can be used for growth is good. Equipment funding falls into this category because you can leverage the short-term loan to improve your revenue, increase customer satisfaction, and scale your operation.
The current pandemic and state of disaster have taught us that companies need to be incredibly agile. It is no longer enough to be able to consistently serve customers, one must also be able to adjust to their emerging needs. Equipment loans will make it possible to diversify into additional services, as well as track your customers into other markets. The quicker you can move, the more likely you are to outpace the competition.
If you’re currently turning away orders because you don’t have the capacity, purchasing equipment now to capture more revenue means that you’ll be able to meet the demand faster. Growth can increase your profits exponentially and the equipment funding will pay for itself over time.
It isn’t just about profits, though, it’s also about keeping ahead of your competition. If customers repeatedly find themselves waiting a long time for your product - or are turned away because of a lack of capacity - they’ll eventually find a business that can provide greater consistency. If you aren’t going to scale your business, your competition likely will.
Often, new equipment will be required simply to maintain your current levels of income. If your equipment is currently older and in need of repair, it’s important to get it fixed as soon as possible, because when equipment breaks down at a critical time, you may find yourself losing orders that you had already secured. Like a COVID-19 lockdown, business disruption through equipment failure can be enough to shut down your business entirely - especially if it’s not possible to find the equipment that you need on an emergency basis. Equipment loans don’t just help you with brand-new equipment, they can also help you replace the equipment you already have.
A business expansion loan in respect of new equipment can help you start adding to your revenue today, by helping you capture more income and providing better, more consistent services to your clients.
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