During the pandemic, two entrepreneurial woodworkers started an Etsy shop selling handmade wooden toddler toys. As the pandemic wore on, the company started receiving more interest in their goods. By early 2022, the two hobbyists could no longer keep up with their orders. They decided the best way to grow the company was to invest in industrial woodworking equipment.
After shopping around, they located some equipment that would work perfectly for turning toys into profits with their business. Since they were a relatively small operation, they did not have the $100,000 needed to purchase the equipment outright, but they did need to move quickly. They started researching equipment loans and found an online lender that understood their vision of turning toys into profits and could get them the funds they needed within a few days.
Various criteria govern business equipment loans. Firstly, businesses must operate for at least one year and possess a good credit history. Additionally, they must demonstrate the ability to repay the loan, as their company’s cash flow determines it. Moreover, the equipment being purchased must play an indispensable role in the operation of the business. Furthermore, the loan must be exclusively utilized for the purchase of equipment and not diverted for any other purpose.
As for the loan they procured, it comes with a repayment term of five years. This grants them the flexibility to make affordable payments as their business takes off. The newly acquired machinery empowered them to triple production. Demand has successfully kept pace with their increased output. They are currently resolute in paying off the loan within three years, adhering to their well-planned strategy.
Additionally, small businesses in need of purchasing essential equipment find equipment loans to be a great option. Notably, lenders usually extend highly favorable terms for the loan, allowing the business to stay operational while repaying it.
Furthermore, equipment loans serve to aid businesses in acquiring the necessary equipment to sustain operations. Moreover, lenders typically offer borrowers very favorable terms, enabling them to repay the loan over time. This type of loan can act as a lifeline for small businesses at risk of shutting down.
Casey has 12 years of technical writing experience. She is also a CPA and bookkeeper. Casey graduated from the University of St. Thomas (Minnesota) with a B.A. in mathematics and currently resides in San Diego, CA.
