Getting the Biggest Bang for Your Buck
One of the realities of owning and operating a business is that it takes a continuous focus on how to get the most out of everything you invest in it, from your time to salaries to equipment. The more specialized the business, the more you find yourself relying on equipment that is created to make your operations more efficient and competitive.
One of the problems today is that technology and computing continues to provide new advantages and capabilities that can quickly obsolete equipment that is only a few years old. While you might still get by with the old installation, you can’t afford to let competition steal business by adding customers the latest and best services make possible with newer features and benefits.
Finding the Capital
For smaller, mid-size, and growing businesses there is often the issue of available credit and capital to purchase new equipment, even if the numbers show you that it is a good decision to do so. Especially in the last few years, many small business owners have seen their growth held back because the credit lines are not there at banks or other lenders. Still others have difficulties with their credit because of the impact of the recent financial crisis. The struggle has been to survive, much less invest in new machines and computers.
Such companies have two basic options for finding the working capital they need. When you consider the first, seeking equity investors, you have to deal with the issue of giving up part of the ownership of your business. Many entrepreneurs are reluctant to do this because they know that if they’re successful over the long term, this can prove to be a very expensive way to find working capital. There are also a number of very stringent legal requirements and heavy expenses associated with selling securities in your business.
Another factor with equity funding relates to the current status of your business. It’s often difficult to get any kind of reasonable valuation on your company before it is running with a good profit and cash flow. Without those two, you’ll be asked to give up far more ownership than you you’re willing to consider.
Debt or Equity?
Because of these factors, many business owners turn to debt as the preferred way to access working capital. However, as we noted above, this is also often a problem. Lenders are hesitant to provide money to companies that aren’t financially healthy and will seldom loan to newer businesses. When you can get a loan, it’s usually needed for operations and other necessities, not for investing in new equipment.
Many companies find leasing to be a good option that can be used to upgrade existing or purchase new pharmacy and medical equipment. If it’s available, this can be a good source of funding to get the items you need for your business. Many vendors actually have third-party sources that work with them to provide such financing. Once again, this source might not be available to you because of your company’s credit status, time in operation, or existing debt and leases.
Getting Creative
Fortunately for many small and mid-sized companies, there are firms in existence who provide business owners with creative ways to find the capital for purchasing pharmacy and medical equipment. One of these is Advance Funding Network, a company that has helped thousands of businesses add to their working capital, often regardless of their credit history or status.
The innovative approach that companies like AFN take is to provide working capital based on the revenue your company will produce, not your past financial performance. By demonstrating an ongoing level of business with your customers and clients you can use money provided against that future income.
The win-win situation is that if you can use these funds to buy equipment that adds to your revenue and profits, you’re that much further ahead of the game. Of course, you can use the money provided for other purposes. The key is that as a business owner you are given one more way to take away the constant pressure that comes from inadequate working capital.
Finding adequate capital is always a challenge for the small and mid-sized company. AFN provides a creative way to help you achieve the success for which you’re working so hard.
