Running a business is quite a challenge, whether you’re living in Burnaby or anywhere else in British Columbia. That said, the ever-growing popularity of the city has made it a great place to set up shop, especially in the realms of new media, education, and information technology. And, no matter what kind of business you own, it’s important to manage your money properly and know where every dollar is going (and coming from).
Potentially one of the largest expenses is financing the right equipment to keep things productive. If you’re interested in learning about those costs and taking the next step toward business expansion, keep reading.
Looking for a commercial mortgage for your business? Click here
Why Should I Get an Equipment Loan?
Traditionally speaking, an equipment loan allows you to access a lump sum of money and pay it off through scheduled installments. Any funding you’re approved for is usually deposited into your bank account via direct deposit, although there are also specialty lenders who will transfer the money directly to your equipment dealer.
An equipment loan comes with many benefits (including but not limited to):
- The ability to make otherwise expensive tools, heavy machinery, and vehicles more affordable through an adjustable repayment plan.
- The opportunity to work with a lender that understands your industry an can offer you reasonable rates and conditions.
- An easier time sticking to your budget and managing your daily expenses.
- Less time wasted and more time to focus on business expansion.
Once you have your financing, you can expand your business by:
- Upgrading from outdated or damaged equipment to state-of-the-art pieces
- Leasing or purchasing tractors, forklifts, and other business vehicles
- Increasing productivity and efficiency with multiple tools/machines/vehicles
Equipment Loan Options
What About My Current Equipment?
Although increased productivity and efficiency are two of the main benefits of an equipment loan, there’s another great financing solution that you can access using the machines, vehicles, and other commercial assets you already own. That’s right, if you have a truck or other valuable piece of property, you can actually leverage it as collateral in order to secure additional working capital.
With that extra capital, you can continue expanding your business by:
- Hiring new employees
- Investing in advertising strategies
- Repairing or renovating your current workspace
- Stocking up on new inventory
- Paying your property taxes, utilities, or other business costs
For more information about secured business financing options, click here.
What Kinds of Equipment Cost the Most?
When you’re trying to create a proper business budget, it’s always important to factor in the cost of purchasing and operating the equipment you need. After all, not only can some equipment be highly expensive, it can also use up a lot of power, and drive up the amount of interest and insurance you pay from month to month.
Some expensive equipment types include:
- Desks, chairs, and other office furniture
- Power loaders, forklifts, and other warehouse vehicles
- Heating, cooling, and ventilation units
- Refrigerators, ovens, and other service industry tools
- Televisions, arcade games, and other entertainment devices
- Weight sets, cardio machines, and other fitness equipment
While the equipment that you actually need is, of course, based largely on the type of business you’re running, even a simple computer can cost a pretty penny. Nevertheless, equipment loans are meant to help you deal with those kinds of costs.
Can you get business funding based solely on an idea? Find out here.
Will My Business Qualify for an Equipment Loan?
Although it’s true that any tool, machine, or vehicle can be quite pricey, the great news is that almost any business can be eligible for this kind of financing. However, since an equipment loan can be a substantial amount of money, it’s essential to prepare your finances for inspection and show your lender that you can afford all the associated costs, such as your payments, interest rate, and any administrative fees.
That’s right if you have a healthy business income, a low amount of outstanding debt, and good credit, your lender will consider you less risky and more qualified for approval. The more qualified you are, the better the results will be for your loan amount, interest rate, and repayment plan.
Look here for some information about your business credit score and report.
If you’re new to business management, it’s also important to learn about what types of industries have a high chance of succeeding in Burnaby. For instance, being a more central city means the area probably isn’t the greatest spot to try to invest in large scale agriculture.
Some profitable business types in Burnaby include (but aren’t limited to):
- Law firms
- Shipping/manufacturing industries
- Transportation services
- Fitness centres
- Wellness spas
- Home/vehicle repair shops
- Food/beverage locations
- Construction companies
Dealing with small business debt? Click here to discover the solutions available to you.
How Can Loans Canada Help My Business?
If you’re looking to build and expand your Burnaby business by purchasing tools, machinery, vehicles, and other equipment, be sure to contact Loans Canada. We’re always here to help you get connected with lenders that understand your industry. Contact us today or apply below!