Virtually every business uses equipment of some kind, which can be expensive to obtain. However, this article covers several ways to make obtaining equipment for your business easier, including grants, leases, and equipment financing.
Tip 1: Apply for a Grant
One way you may be able to obtain funds for equipment is by applying for a grant for your business. The upside is that grants are essentially interest-free money. The downside is that only certain types of businesses can apply for specific grants, the application process can be grueling and lengthy, and the funds can usually only be used in specific ways. Still, it is worth researching to see if your business is eligible for any grants.
Tip 2: Consider Leasing
Another way to obtain equipment is to lease it. The upside of leasing is that you are not tied to a piece of equipment forever—that is, you can move on to newer equipment at the end of the lease. The downside is that, unless the leasing agreement has a lease-to-own component, you will be making payments on equipment without gaining ownership of it.
Tip 3: Consider Equipment Financing
Equipment financing provided by a lender allows borrowers to spread payments for equipment over a longer period of time. This allows businesses to afford equipment they may not otherwise be able to buy. Often, the purchased equipment serves as collateral for this type of loan. Businesses get to keep the equipment at the end of the loan’s term, provided they make all the payments.
Tip 4: Consider Used Equipment
Depending on your industry and the state of the equipment available, purchasing used equipment may be a viable option, especially when combined with equipment financing. For example, according to Forbes.com, government agencies often sell equipment they no longer need.
Purevue Capital’s other blog posts are a great source of information on how to make your company thrive, so be sure to check them out.