Alternative Financing For Your Equipment, Factor Your Invoices To Increase Your Cash Flow
One of the biggest challenges for small businesses is getting the right financing to buy new equipment. New equipment is necessary for running different types of ventures whether in medicine, food processing, farming and manufacturing. You may require computers for your office, new or more efficient machinery for your farms or a restaurant equipment that will make your business more relevant to your customers.
Businesses in different fields face varying challenges. When it comes to small business financing for equipment, this is one challenge your company can meet with alternative financing methods. Here’s a crash course into Invoice Factoring 101.
Financing Equipment in Agriculture
Farming is one industry where small to medium scale businesses need financing for equipment. Farming entrepreneurs find that there are many tools that are needed for an agricultural venture.
Some of the high priced equipment include:
- Milking equipment for dairy farms
The small scale farmer has to contend with the high cost of equipment. Most of the machinery like tractors and combine harvesters are often designed for big farms and that’s partly why the costs remain high.
Small farms need to remain profitable in an increasingly competitive market. However, the high cost of equipment can be prohibitive. For example, the cost of a tractor can range from $20,000 to almost $400,000. Farmers usually need more than one piece of equipment to efficiently complete certain processes.
In agriculture, it is also important for farmers to stay up to date with new scientific and technological advancements.
By investing into the latest equipment, businesses can increase:
- Reduce Waste
- Reduce incidences of event failures
By adopting better equipment and methods through research & development, business owners have the potential to thrive in a highly competitive market.
Leveraging your invoices with a factor, allows your business to have additional cashflow to invest into new equipment and processes. As a provider of purchase order financing and invoices factoring, invoice factors like Meridian PO Finance can help you release the cashflow held back by unpaid invoices. Releasing this excess pool of funds will aid in the growth of your business and your relationship with factors like Meridian PO Finance.
RELATED INFORMATION: Find out more about FACTORING invoices for your small business.
Financing Construction Equipment
In many instances, invoice factoring can play a big part in the construction industry. Heavy construction can be expensive enough to be out of the reach of small and medium sized businesses. Excavators for example sell between $100,000 and half a million dollars, while land fill compactors are usually between $150,000 to $300,000.
Other construction equipment that can be acquired through small business financing may include:
- Earth Movers
- Dump Truck
- Bull Dozers
- Rock Breaker
- Concrete Pump
These machines are necessary for construction work as they reduce the time needed to complete the project, are safer than human labor and are more accurate at completing the task. A construction business needs the latest equipment if they are to provide quality services for their clients. For example, the shorter the time a construction company takes to complete building a pool in a residential home, the more their services will be appreciated, the more the homeowner can save and the better the profit for the construction firm.
Funding Restaurant and Eatery Equipment with Invoice Factoring
Starting a restaurant is both capital intensive and logistically complicated. For many new businesses, there are many unexpected instances that arise from time to time. Small restaurants often require small business financing for working capital. However, equipment costs needed to start the business can be much higher than some business owners expect.
Restaurants need to have the right ambiance to match the theme of the eatery. The kitchen may need to be renovated and new equipment bought. An espresso machine can go for $17,000. The cost of outfitting the kitchen alone can range from between $15,000 and $250,000.
Food service establishments can expect to invest in:
- Food Warmers
- Food Processors
Some of this equipment is necessary to ensure the business provides quality service and remains relevant to its customers. A restaurant may need a POS (Point of Sale) system that can accept different credit cards to avoid discouraging potential customers. The POS system should have the capacity to support processes in a fast paced business environment. A POS system that can read credit cards, has a thermal reader and touch screen display can range from a few thousand to tens of thousands of dollars.
There are various ways small businesses can access financing for equipment needed to run their operations. You can modernize your business, improve efficiency & buy new equipment for new processes using different types of financing with flexible terms available for small businesses. Invoice factoring is one of the most efficient ways to purchase your business equipment.