As a new entrepreneur, growing your startup business can be difficult.
With so much competition out there, you need something that will set your company apart. And one way to attract customers in a competitive market is by offering efficiency. It will ensure profitability for, as customers want to spend their money with a business which prioritises their needs and wants.
Efficiency goes hand in hand with innovation, and using technology can better your company’s services or products. As a new entrepreneur, you may be hesitant to approach an equipment finance company, especially if you believe in bootstrapping and want to build your company without any credit. However, getting a business loan in South Africa is possible. It’s designed to benefit your business’s bottom line, as you are making an equipment investment for your future. Being savvy with your money is vital; be smart while growing your business is through equipment finance.
See how asset and equipment financing is a smart move for your business right now.
Save money on your business’s working capital
As a business owner, it is important to ensure your business has more money coming in than going out. Paying cash for equipment of any kind will mean that a large sum of money, if not all of your money, will be going towards the equipment, leaving a large dent in your working capital.
Using a large amount of working capital can be detrimental in a crisis, which is why it makes more business sense to apply for business finance when purchasing equipment. This allows your business to repay the money back in manageable instalments, keeping your business afloat in moments that matter.
Opportunity to explore the latest equipment
In a competitive business environment, you need the latest equipment to ensure efficiency. The equipment you’re using now may work, but the type of equipment currently on the market will give you faster results, which, in turn, means happier customers. When you get equipment finance in South Africa, you won’t have to hold back on purchasing equipment or wait until there’s an equipment sale. Instead, you’re able to get newer and more advanced equipment whenever your business needs it.
Be able to compete with competitors
As a small business, you have a lot of catching up to do when it comes to being on par with your competitors. Most of your competitors have built relationships with their customers over the years, and brand loyalty and the longevity of the business has ensured customer retention. This is not to say that your business cannot offer the same thing, but customers are more likely to go back to a business which they have formed a relationship with. To counter this, and make your mark in the industry, you need to be as good as your competitors and offer more. With asset and equipment finance, you can get the equipment your business needs to be more efficient. This will help you attract customers and have the potential to bring in new customers through customer advocacy.
Increase safety in your workplace
It’s always best to think ahead; avoid anything that has the potential to set your company back, for example, an injury in the workplace. Outdated equipment can be a dangerous hazard for your employees, and the longer you keep it, the higher the chances are of someone getting hurt. It’s vital that you think ahead, and address anything that has the potential to harm the livelihood of your business, like paying for medical fees of an injured employee. Getting finance will ensure you have safe and worker-friendly equipment that will allow your workers to do their work. And, always keep in mind that it’s best to ensure safety than dealing with the consequences of outdated equipment.
Improves cash flow forecast
The same way you’d handle your personal finances, you need to do the same for your business finances. Budget your business’s money wisely, and to do so, you need to forecast your budget. Having equipment finance allows you to plan around your monthly instalments. The payment terms and amount are predetermined to ensure that it can fit in your company’s budget. This allows you to improve your cash flow forecast, and get ahead of any shortfalls in your finances. Lenders also have online budget tools that you can use to calculate how much you will need to repay per month, helping you plan better.
Fast way of seeking funding
With outdated equipment, you never know when you’ll need to purchase new equipment.
The older it is, the more likely it is to stop working. And, if you haven’t budgeted for maintenance and repairs, it can set you back. You will need a business funding solution that is fast to ensure your business can be up and running again. Seeking government funding or any other alternative as opposed to equipment finance can take time, which means production will cease.
In a fast-paced environment, you need to be able to get back on track fast to ensure you don’t lose customers. Equipment finance is a smart move for new entrepreneurs to have a way of getting fast funding in times of need as it results in faster business and revenue growth.
Improves your business’s credit score
As a small business still starting out, your company’s credit score may not be where you want it to be. To help combat that, grow your business’s credit score and improve credibility for any business loans in the future, an equipment loan can help grow your credit score.
Having a positive credit score for your business can be beneficial in the future as you can get better loan terms with lower interest rates. Even if you don’t think you need it now, knowing that your business can be approved for funding can be helpful in the future.
When it comes to the success of your business, you cannot do it alone. You need funding to ensure your business remains afloat and that you can compete with your competitors. Business funding for new entrepreneurs is a smart way to boost your company’s growth and make it more profitable. At the end of the day, the success of your business means that you and your workers are able to support your family, and improve South Africa’s economy. With advances in technology, you no longer need to go to a branch as lenders have business finance application forms online to ensure you don’t have to disrupt your day. So, make the smart choice now for your business.