Startups need the right resources to develop from day one. That means having the latest equipment available for your industry.
But what if you lack the capital to finance the equipment you need for success early on?
Luckily, startup founders like you can take full advantage of equipment financing to start your company strongly, regardless of any industry.
What’s your industry?
According to the latest data from the Leasing Equipment and Finance Association, professionals finance the financing tools for the following industries:
The transportation industry receives most of the equipment financing, almost 30% of all equipment financing businesses.
IT and related computer businesses represent 21.3% of all equipment financing.
Construction comes 11.5%
Agricultural business receives slightly more than 9% of all financing.
The medical industry reached 4.7%
The industrial and manufacturing sectors received 3.7%
Energy-related companies represent 2.5% of the equipment financing portion.
Now, for the next question we consider. What is the best way to use your equipment’s financial loan?
How to Use your Equipment Funding
Also included in the same ELFA report are figures for office machines (4.2%) and material handling (2.8%).
Whether your startup is focused on technology or agriculture, office machines are essential for your startup.
For example, you can use a financial loan equipment to purchase the following requirements for your business:
Communication devices such as fax and telephone
Desktop and laptop computers
Paper cutting machine
Router and Internet modem
However, it is important to note that computers eventually become obsolete over time. Therefore, you may find yourself already in need of an upgrade as soon as you pay off your equipment loan.
That’s why we recommend to consider the financing of office equipment with a longer life cycle.
On the other hand, material handling equipment does not have a short life cycle like a Macbook Pro or Dell laptop.
Material handling equipment is used in all industries, especially in the transportation, construction, agriculture and manufacturing sectors.
This type of equipment usually includes:
Silos for farming
Automated Guided Vehicles
Delivery pallet truck
General industrial trucks
Other material handling equipment includes storage-related products such as stacking equipment, shelves, drive-in storage racks, and frames.
Material handling equipment is also important for start-up restaurants and other culinary related businesses.
If you are launching a new food startup, you may want to consider using your equipment financing loan to buy refrigerators, commercial freezers, commercial toasters, and ovens for example.
Equipment Financing: Next Steps
What’s great about being a new startup is you can immediately receive your equipment financing to get the ball rolling. In fact, you can even get approval by the end of one business day.
We recommend creating a list of the long laundry equipment you need to start your startup off the ground. It’s also important to get your finances to ensure you do not fall into “negative equity” during the first few years of your business as you repay your loan.
As a new business owner, you can take advantage of low equipment financing rates and pay off your loan over the span of 5 years as you work to generate that initial sale.