Businesses across the country have been hit hard in recent months. COVID-19 has resulted in social distancing mandates that have really impacted brick-and-mortar shops.[2] Some storefronts in cities like New York or Chicago have also been disrupted by looting.[2] Because of these factors, entrepreneurs have had to reach out for help. Over 80% of small businesses in the US have applied for federal government aid due to the coronavirus.[1]
In some ways, that is to be expected. The government recognized that people needed help and found a way to offer it. What’s really unusual is that most entrepreneurs haven’t looked to other sources of funding.[1] Nationally, only about 5% of businesses applied for aid from state and local authorities.[1] Even fewer people have asked their family and friends for help.[1]
That makes sense, in a way. Everyone has been hit by the pandemic. No one wants to put demands on their loved ones. But it does suggest that businesses have not been exploring all of their options for recovery during this time. Most of the success stories of the COVID era have been about companies that are able to adapt during the pandemic.[3][4] That might mean expanding from a B2B model to one that includes end consumers.[3] It’s a strategy that served Chicago’s Windy City Mushrooms very well.[3] Or it could mean investing in new technology, like Houston’s Nuro driverless delivery service.[4]
The key for each of those businesses was not just a willingness to change. It was also an investment. Windy City Mushrooms enlarged their physical footprint, in part to meet new demand from at-home cooks.[3] Nuro went from being a novelty to a necessity.[4] But to make that happen, the company had to make deliveries truly contact-free.[4] The company had to find a way for the end consumer to open the vehicle, instead of having a person on board to do that.[4] In the face of one of the biggest economic upheavals ever recorded[5], most business owners knew they needed to make a change to get by.
Every entrepreneur should know that equipment financing is a borrower-friendly way to invest in a business.[6] With equipment financing, applicants get their lending decision in as little as 24 hours.[6] There’s no down payment with this kind of credit.[6] Soft costs like equipment installation are included, which is not the case with a typical bank loan.[6] Best of all, equipment financing can be written off thanks to section 179 of the IRS tax code.[7] The limit is a generous $1.4 million, and the only requirement is that the equipment be used during the tax year it was purchased..[7]
At Alliance, we finance any equipment that is pertinent to your business - from computers and software to trucks/trailers, hospitality, yellow iron, pos systems and EVERYTHING IN BETWEEN! If someone has an idea and a business plan, chances are we can help execute it. Don’t be afraid to reach out and see if equipment financing can work for you.
Sources:
[1]https://smallbiztrends.com/2020/08/lendingtree-family-friends-pandemic-loan-survey.html
[4]https://www.texasmonthly.com/news/driverless-grocery-delivery-nuro-coronavirus-houston/
[6]https://www.allianceleasing.net/equipment-leasing/