Financing Equipment for the First Time

By | February 13, 2024

We have a ton of repeat business at Crest Capital.  Companies who finance equipment with us again and again.

Small Business Optimism Financing

But it occurred to me that every equipment financing client, whether it’s ours or someone else’s, at some point in their company history financed equipment for the very first time. 

And for those companies, it was likely a daunting step, filled with hopes, dreams, quite a bit of trepidation,  and more than a few sleepless nights of “should I or shouldn’t I?”

So this post is for you, first timer! Or those who remember their first time financing equipment. Because it’s not only a BIG step, it’s a necessary one for success.

That’s where I’ll start: if you are going to grow and succeed, financing equipment will be a regular part of your operations. It is simply not practical to pay cash for everything you need as you grow. The largest, richest companies on the planet use financing to purchase equipment. You are hardly alone in using monthly payments to invest in your company.

Secondly, be happy and excited. Remember that you are financing equipment because you are growing, and you need it to produce revenue. 

I do understand that moment when you go beyond the beginning stages and start to realize success, and it dawns on you that you need “bigger / better / more” in terms of equipment to keep up. Borrowing funds for equipment purchases can make one anxious, but always remember that you are borrowing because of your success. 

Here’s a neat thought that may make first timers feel better: For most companies, the initial piece of equipment financed is almost always tied to revenue – production machinery, a vehicle, new tech to offer another service, etc. So knowing that, some quick math may help. Take the expected monthly payment, and determine how long the equipment will need to earn that in revenue. I’ll bet we’re talking a matter of days or even hours. It’s a good way to look at things. Why waver on financing a piece of machinery when it can earn its payment and likely a whole lot more every month?

First time jitters are common, whether it’s your first day of school, your first kiss, or financing that first piece of equipment. But they all have something in common – we look back at them and smile, wondering why we were so anxious in the first place.  

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