If you are a manufacturer, your equipment and machinery can be a large asset on your books. In fact, if you’re a small business, it’s quite possible that it comprises the majority of your net worth.
When it comes to running your day-to-day operations or expanding your business, there may be even more value in your equipment than you realize.
Take Advantage of Your Assets
For example, you run a machine shop and ten years ago you upgraded your technology to improve profitability. You purchased a CNC lathe for $100,000, took out a loan, and paid it off in five years. The lathe is currently valued at $20,000, which means this single piece of equipment still has tremendous value even after it has been paid off.
An asset this valuable is something you can use as a great advantage when you need working capital. You can tap into your equipment as collateral for a loan to help increase your cash flow and use the funds to pay vendors early or take advantage of discounts, repair or purchase new equipment, or manage payroll.
Equipment Term Loans Provide Working Capital
Summit Financial Resources views your equipment as an asset we can loan against. As an add-on product to an Asset Based Loan or Invoice Factoring Loan, term loans can speed your growth by adding availability to your existing working capital line of credit. Our term loan amortization is up to 36 months, allowing you to finance your short-term needs and make the investments necessary to keep your business growing.
Any equipment you use to run your business may be used as collateral. Even small tools like drill presses, hand drills, and saws can be considered; each item may not be worth much on its own, but collectively their value adds up.
It takes cash to help grow your business, and having adequate working capital on hand is critical to ensuring sufficient cash flow. If you’re seeking capital to finance operations, maintain or upgrade your equipment, or purchase more inventory to meet demand and stay competitive, equipment loans are a vital resource for helping you expand your company’s potential. Ask us about increasing your cash flow by adding an equipment term loan to your core line of credit.
Asset Based Lending is a few clicks away.
Summit Financial Resources specializes in working capital financing for small to medium-sized businesses that need increased cash flow. We provide working capital financing through invoice factoring, asset-based lending, inventory lending, and equipment financing.