Celtic Bank Blog

Four Business-Building Equipment Loan Categories You May Have Overlooked

Some people think “equipment loan,” and they think construction equipment, industrial machinery, or heavy-duty commercial kitchen appliances. But did you know that you can also get equipment financing for a broad range of other uses, too? Whether you need machinery, technology, transportation, a new POS system or more, equipment loans can be used to purchase a lot of different types of equipment.

Here are some other ways small business owners (like you!) are using equipment financing to grow their business:

UPDATE TECHNOLOGY

Whether you’re looking to switch from bulky desktop systems to laptops, or just revamp your medical billing process, keeping your company’s technology current gets expensive—and fast! You can pay for it all upfront—obliterating your savings for the next year. Or you can get a generic long-term loan which, by the time it’s paid off, will be for equipment that’s now, again, out of date.

Smart business owners keep technology current and preserve much-needed cash by financing their equipment instead of buying it outright. The specialized loan and leasing options keep costs affordable and the equipment current, too.

STABILIZE CASH FLOW

Let’s say you’re looking to purchase some new equipment. And you can actually afford the full cost of it upfront. But in doing so, you may end up with some dangerously low cash flow and very little cash cushion for months to come. Is it worth it?

Many business owners finance equipment to protect their cash. They find a lender with low rates and flexible terms—allowing them to get the equipment they need, maintain healthy cash flow and keep their bank accounts full.

RECONFIGURE WORKING SPACES

Before we dig into this section, we should probably make something clear. When we talk about redoing your working space, we don’t mean tearing down walls or adding on rooms. But an equipment loan can be used to help you refit your store or office to meet changing demands.

For example, let’s say you want to redo your storefront before the busy holiday season. Use your equipment loan to buy and install the new shelving, display cases, and furniture to make it happen.

Or, maybe you’re a rapidly-expanding office. You can use your equipment loan to purchase new cubicles, desks, chairs, phones, and computers to restructure the office to accommodate the recent influx of new employees.

TRANSPORTATION

Vehicles count as equipment, too! Whether it's a small company car used for visiting customers and clients, a catering van, or a full-on semi truck, you can use your equipment financing loan to get your business moving—literally!

Of course, there's always the more traditional uses for equipment loans—the construction, restaurant, industrial and other equipment we thought of at the beginning of the piece. Those are all great reasons to get an equipment loan, too! We just wanted to make sure that you knew you had other options.

For more info on equipment financing uses and strategies, check out our comprehensive guide, Equipment Financing: A Small Business Owner's Guide to Loans, Leases, and Lending. Available for download now! 

Facts and data presented in this guide are for illustrative purposes only. Celtic Bank applicants are subject to our credit and underwriting standards to determine credit worthiness. Interest rates, fees, terms and conditions are subject to change at any time without notice and will be disclosed upon final loan approval. This solicitation is not a guarantee of qualification. 

 

The Five Stages of Equipment Financing—From Applic...
Equipment Finance Think: Scenarios to Test Your Pr...