I’m kidding – of course you have. You can’t watch or read the news today without hearing about AI, and if you follow the stock market even a little bit, it’s been front and center for nearly two years now.

AI is pretty amazing so far, and it will only get bigger, better, and more useful. While it’s difficult to predict any kind of definitive applications, I feel comfortable saying it will be an essential part of our lives, especially in a business sense.

One thing I do feel will happen is that many industries will see a definitive AI software application introduced in the next few years. It’ll be one of those industry-specific applications that will become the gold standard. Either you get it, or you’re on the outside looking in.

While I cannot predict what industries this will happen to or what the applications will actually do, I can tell you that Crest Capital will likely finance it. 

Software financing is something I don’t talk about a lot. This is because equipment financing is traditionally thought about in the tangible equipment sense – machinery, vehicles, fixtures, trailers, heavy equipment, office machines, computers and servers, and many others. Software usually doesn’t spring to mind.

However, it should, because there’s a lot of industry-specific software out there that’s quite expensive and a great candidate for financing. That Point of Sale (POS) system that only your industry uses can be quite costly. 

For example, take an auto parts store – they use software specifically tailored to their services. However, it likely costs as much to develop as common business applications used everywhere. But there’s a massive difference in potential sales. Where every office in town might use a common business application, how many auto parts stores are in your town? One? Two at most? Maybe none? That drives the price waaaay up. That’s why the specific software your company probably uses costs so much. 

Heck, staying on the auto theme, I knew a guy who developed an application specifically for tire retreading (I helped him write the manual for it.) Since his customer base was so small, he had to charge a premium for this piece of software (a finance-worthy premium). But it made operations so much easier that it was worth it for his clients. 

Yup, software financing is something we definitely do, and I feel the need for it will be growing in the next few years as well. We’re here if you need us! 

But there is a change in the air – I’m seeing companies look harder than ever at financial flexibility, and remaining as nimble as possible. You could even say they are resolving to do so. Let’s discuss that a bit.

The pandemic has shown us how fragile it all is, and how everything can change on a news headline or two. Companies can no longer afford to have their assets needlessly tied up. Staying liquid and “ready for anything” is very desirable.

So what does that mean for small and mid-sized companies? It means businesses who finance equipment are going to increasingly look to shed lending restrictions, like blanket liens, minimum bank balances, and requalifying for a loan every year. We go over these extensively here.

If you borrow money from a bank, and thus have a blanket lien and a minimum balance they insist you keep, you are FAR from financially flexible. If there’s an event tomorrow that affects your industry, your cash and your assets are tied up. In plain terms, you can’t make a financial move. 

The other really popular bank restriction is making you requalify for the loan every year. Well, how many industries do you think were a bit off in 2020? So for many of those companies, not only did they have an off year, but the bank has every right to say “yea, you know that equipment loan we gave you two years ago? Well, your current numbers say you wouldn’t get it today, so we’re calling it all in right now.” Ouch. 

Financial flexibility folks, that’s where it’s at. Choose an equipment lender who does NOT use these restrictions (hint hint – us!) 

Happy New Year everyone. Stay safe, stay healthy, and stay flexible!

These are short (30 seconds to a minute and a half) recorded testimonials from real clients, all over the United States, and there are well over 100 of them. You can see the entire list here.

I realized I haven’t heard these in a while, so I spent some time listening to a bunch of them. And something really struck me as I listened to the different voices and accents from all over the country: THIS is the Sound of Small Business USA. 

Seriously, we have a walk-in freezer financed in Florida. This was for a Carvel store. 

A bit further down the list, we have snow removal equipment financing for a company in Utah.  Then there’s a boom lift financed for a campground in California (that one is funny because he goes into detail about all the collateral his bank wanted, which is why he came to us.)

More? How about a CAD/CAM Machine financed for a race design shop in Arizona? Or some equipment for a angus beef cattle ranch in northern Florida (so we’ve got both the main course and dessert covered in the Sunshine State… oh, we financed some equipment for a winery there too – it’s a full meal!)

One of the neat things about equipment financing is the types of businesses that we work with. Listening more to the list, we financed some equipment for a microscope service in Illinois. Did you even realize there are small businesses that deal only in microscopes? And while we’re on “science”, we’ve got lab testing equipment financing in Ohio, and mobile medical imaging equipment financed for a nuclear tech company in Maryland. 

This is just scratching the surface – we have thousands and thousands of customers. But even in a small sample of 100+, I am struck by the variety of industries, never mind the regional accents and speaking mannerisms.  The sheer diversity of our customers and company types is staggering, and it’s a joy to hear their voices.

The next time the news gets you down, click that link above in this post and give a listen to a few. I guarantee you’ll feel better. 

One thing is clear – waiting is very common. I said this already, but I see it in my business month after month, quarter after quarter, year after year.

But one thing I actually question is “is it always good to wait?” I don’t pretend to know every company’s financials and such, but one thing I DO know as an equipment financing / equipment leasing specialist is the fact that buying new equipment (or even “new to you” used equipment) is almost NEVER seen as a bad thing by anyone.

• Let’s face it – your employees like new equipment. New computers, new office furniture, new office machines… these all make employees feel better about their jobs and the company. Yes, the accountant will say “expense”, but is it really? How important is morale to production? Trust Fletch here – decades-old office furniture and computers built in 2003 cost you money.
• New equipment also makes employee’s jobs easier, especially if the equipment is directly tied to production. That’s a no-brainer, but it’s worth mentioning.
• New equipment also can mean new products or services offered. Again, another no-brainer, but offering new products or services can really help the bottom line.
• Expanding on the preceding, new equipment can also put you ahead of your competitors. A print shop buying the latest in laser printing technology jumps to the head of the line in offering fast, cutting-edge print products.
• Your customers like it when you stay current. And it’s not just machinery – even something as simple as an old sofa in your reception area can have negative effects.

There is almost no downside to buying new equipment. And your accountant will even be happier if this equipment is financed / a favorable equipment lease is written (and use Section 179, of course).

So basically my message (after three posts about this) is this: If you need equipment, and feel the need to wait for an arbitrary date, weigh both the upsides and downsides to waiting. I’ll bet after all is looked at, “buying now” makes as much sense as anything.