In the business world, there are a lot of unexpected expenses that can come up and potentially put a rut in your company’s budget. Unpredictable weather, equipment breakdowns, supply chain problems and customers not paying are some of the factors that can cause construction and transportation companies financial distress. Luckily, there are different financing options available to help companies get past these hurdles.
One construction equipment loan that can significantly help a business is by using a Revolving Line of Credit. Cash is needed for any business to grow. With a Revolving Line of Credit, companies can dramatically improve their working capital.
Let’s go over Equify’s revolving line of credit and the advantages it offers.
A revolving line of credit works where a business can borrow cash up to the maximum amount approved with the ability to withdraw, repay, and withdraw again continuously for a certain period of time. To secure this type of financing and establish a payment plan, borrowers provide assets as collateral, which can include equipment, commercial property or land that is owned.
There are a number of different benefits to businesses through a Revolving Line of Credit, businesses are able to:
Stockpile supplies or materials for future projects
Keep accounts payable current
Improve working capital
Improve bonding capacity
ALL businesses can greatly benefit from a Revolving Line of Credit, including:
Businesses with fluctuating cash needs
Those who are looking to expand their bonding capacity
Ones who are looking to consolidate their debt
Companies that want cash available for business needs, e.g. equipment supplies, materials or parts purchases in advance as well as repairs for your current fleet.
The economy is causing a decrease in working capital for many businesses. Contact a specialist today to learn if a Revolving Line of Credit is right for you!