The majority of modern businesses require certain specialized equipment and tools to perform in a competent manner. However, many of them, especially the small and medium scale ones, face a lot of issues in acquiring the needed funds for it. While they can make use of their operating cash flow to fund such equipment, this might cause disruptions in their operational processes. Hence, it would be a much better option for these companies to seek out assistance from equipment financing providers like Sertant Capital. This is a full-service and independent equipment finance company based in Newport Beach, California.
Businesses nowadays commonly leverage the system of equipment financing to invest in important assets, while ensuring that no disruption is caused to their cash flow. Companies like Sertant Capital focus on bridging the gap in equipment financing by providing their clients with a comprehensive suite of services, which includes structured financing and application only vendor programs. Equipment financing can be used to acquire just about any type of an important business asset, including vehicles, furniture and large machines.
According to the professionals working at Sertant Capital, the system of equipment financing has multiple benefits. Here are a few of them:
- No down payment on 100 % financing: Majority of traditional institutions ask for a down payment for any business loans. However, people may receive 100% equipment financing without having to make any down payment. This shall enable entrepreneurs to keep more cash in their coffers, and provide them with a chance to spread the equipment expenses efficiently over its lifecycle.
- Upgrade benefits: In case entrepreneurs have acquired financing for any leased equipment, they may enjoy the option of upgrading the machinery or add certain accessories to it. This feature enables businesses to deal with the issue of obsolescence, in case a new version of a machine comes out just a few months after one has just purchased it. The system of equipment financing enables companies to stay at par with the current technology trends, without having to discard old equipment and obtain new financing frequently.
- Fast and easy: The application, processing and approval process involved in traditional business loans tend to be too time-consuming. Equipment financing loans, on the other hand, are processed in an extremely swift manner as they are generally backed by the ongoing business of a company. There usually is a direct link between the newly acquired equipment and operational efficiency of a firm. Hence, it is relatively easier to let the finance provider know that the entrepreneur is in the condition to meet their payment obligations.
The professionals of Sertant Capital especially mention that financing equipment purchases can considerably help in keeping the working capital, as well as lines of credit of a company available for emergencies and future requirements. In certain unfortunate cases, a company might be met with unexpected expenses right after major cash outlays. Hence, it is crucial to have an adequate sum of cash-in-hand at all times.