See How Much You Qualify For
Qualifications: In business for at least 9 months with at least $120K in sales over the past 9-12 months
For many small and mid-sized businesses, applying for a working capital loan is the ideal solution to purchase new or used equipment right now – and not months or years from now.
And this is particularly the case if a business has been operating for less than two years, has imperfect credit, or lacks collateral for the loan – all of which will make applying for a conventional bank loan an exercise in frustration; one that, ultimately, will end in frustration, too.
However, while purchasing new or used equipment can be very profitable, it’s important to keep a few key factors in mind to turn this expectation into a bottom-line reality.
With that in mind, here are 4 tips to ensure that your business loan for purchasing new or used equipment is money well and wisely invested:
1. Evaluate the Impact
Will the new or used equipment measurably improve productivity, efficiency, quality or any other key objective? Will it allow you to out-perform your competitors? It’s vital to do your research and look past any “marketing hype” that equipment vendors may try and use to influence your buying decision. Make sure that your final decision is based on data, and that it will measurably help you improve your business – and therefore your competitive advantage and profitability.
2. Assess the Total Cost of Ownership (TCO)
While any new or used equipment will come with a price tag (or more likely, a bolded number on a quotation document), it’s important that you factor in all associated costs that you’ll incur in the months and years ahead. These costs could include training, maintenance, electricity, upgrading your location to comply with fire, health and safety regulations, and so on!
3. Beware of Leasing Costs!
Sometimes a “low leasing cost” can turn out to be surprisingly and shockingly high in the long run, because equipment – just like any other asset – depreciates over time. As such, businesses that aren’t careful can end up over-paying for an asset that they don’t own; the seller or leasing company does. Just as with shopping for a new or used car, in 99% of cases it makes much more financial sense (for you, that is!) to buy rather than lease. Keep this in mind when you weigh your options and, as always, “do the math” before you sign on the dotted line; not after.
4. Shop Around
In the past, doing business in a small city or community usually meant dealing with one or maybe two equipment suppliers. But now with the Internet and countless shipping options to just about anywhere, you have plenty of options. Leverage this advantage by shopping around so that you can find the equipment you need, at the price you want. Of course, you also want to keep service, warranty, quality, and other factors in mind, and make sure that you’re truly comparing apples-to-apples.
Contact us Today
Call Mulligan Funding at 855-326-3564 to discuss your financing options today!
The information shared is intended to be used for informational purposes only and you should independently research and verify.
Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.