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 for 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 could get them the funds they needed within a few days.
There are several criteria for business equipment loans. The business must be in operation for at least one year, and the business must have a good credit history. The business must also have the ability to repay the loan (as determined by the company’s cash flow). The equipment being purchased must be essential to the operation of the business. The loan must be used for the purchase of equipment, and not for any other purpose.
The loan they purchased had a repayment term of five years which gave them the flexibility to make affordable payments as their business took off. The machinery allowed them to triple production and demand kept up with their increased production. They are planning on paying off the loan within three years.
Equipment loans are a great option for small businesses that need to purchase essential equipment. The terms of the loan are usually very favorable, and the business can stay in operation while repaying the loan.
Equipment loans are designed to help businesses purchase the necessary equipment to continue operating. The terms of the loan are typically very favorable for the borrower, and the loan can be repaid over time. This type of loan can be a lifeline for a small business that is 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.
