How an equipment loan can help your new business grow

Growing a new business is an exciting prospect. But if you’ve founded one of the 642,252 construction companies active in the UK, or one of the nearly 50,000 hairdressers and beauty salons, or you own one of the 209,000 farm holdings that power our food production, you know that equipment can make or break a business.

If you’re working to grow your new business, and need equipment to function, no matter the industry, equipment finance could be the helping hand you need to power fast growth and deliver better services to your customers.

What is equipment finance?

Equipment finance is an umbrella term that refers to loans, leases, and lines of credit used to support the purchase and utilisation of equipment, whether physical or intangible. A business loan used to purchase a new piece of tech, or a hire purchase agreement used to get that new company car, or a lease on a used industrial fridge – all of these count as equipment finance.

Equipment finance can be used by sole traders, limited companies, partnerships and charities. The asset itself is usually used as security for the loan, often resulting in lower interest rates and more favourable terms than you might get with, say, an unsecured short term loan.

How can equipment finance help grow my business?

By providing the critical tools your business needs to function, equipment finance could be the catalyst for growth your new business is looking for. Here are some of the ways in which equipment finance can support the growth of new businesses:

Don’t drain your start up capital

The early days of business growth can be precarious, with those limited funds proving absolutely essential for paying new employees, buying inventory, and meeting rental obligations. Leveraging equipment finance frees up your new business’ cash flow, ensuring you have the funds needed to meet your client’s growing demands.

Easier to access

Start up loans and loans for new businesses can be difficult to secure when you have a limited trading history. Since equipment finance often involves using the asset itself as collateral for the loan, the funding is usually easier to secure.

Build a tech stack you can be proud of

Equipment finance helps you secure the latest technologies and tools. Giving your team the tools they need to be successful can have a direct impact on your company’s growth.

Scales as you do

Again, due to its inherently secured nature, equipment finance can be easier to secure, which means that it can grow as you do. Business asset leasing, in particular, is very flexible in its ability to deliver enhanced products or tools as your needs grow.

Create a financial track record

Did you know that your business has a credit score, just like you do? If you ensure your repayments are made regularly and consistently, equipment finance can be a helpful way to establish a track record with finances, improving your company credit score, and potentially enabling you to borrow more in the future.

Be strategic in your future plans

By including equipment finance in your future plans, you may be able to take grander strategic strides. For instance, a new printing press could help you expand your production line, or some new tech could increase the output of your team. You could even use equipment finance to kit out a new restaurant location. Rather than being limited by your available cash reserves, equipment finance could offer you the strategic ability to get the assets you need to plan bigger and better.

Boost company morale

The early start up years can be a whirlwind, with late nights and last minute requests featuring regularly. Equipment finance could provide the tools you need to boost your team’s morale, improving their output and delivering more to your customers.

Activate growth

By preserving your working capital and cash flow reserves, you could use the money you had earmarked for equipment on growth initiatives, such as marketing campaigns, or hiring a new business development executive to perform outreach.

Remain flexible

Agility, speed, and flexibility are the name of the game for start ups. Equipment finance can help provide you with the flexibility needed to adapt to shifting market conditions.

Find equipment finance with Funding Options by Tide

Whether you’re looking to lease a fleet of Range Rovers for your company, you want to get asset finance for a new specialist tool, or you are looking for IT finance, using a broker like Funding Options by Tide could help shave hours off your search. To find out if you’re eligible for a loan between £1,000 and £20M, just click the link below and fill in the details.

Find equipment finance.

Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.