Unable to make major equipment purchases to support growth, small businesses are turning to other sources of financing.

HOUSTON – October 11, 2022 – (Newswire.com)

Charter Capital, the leading invoice finance company, says small businesses are recovering and wanting to grow, but are hitting a wall when it comes to securing financing for heavy equipment. Often leveraged by companies in the construction, oil and gas, manufacturing, transportation and other industries, heavy equipment financing is designed to facilitate the purchase of expensive machinery or vehicles needed by day-to-day operations and growth. However, many aid seekers fail when turning to traditional lenders, creating renewed interest in alternative financing options. Full coverage of the topic can be found in “Heavy Equipment Financing: A Beginner’s Guide to Getting Financed”, which is now live at charcap.com.

The company notes that purchasing heavy equipment is generally preferable to leasing when a business has strong cash flow, the equipment will be used to generate revenue, and the asset will be held for a period of time. prolonged. With more and more business owners saying they don’t qualify for traditional heavy equipment financing, the amount offered is too low, or they can’t generate enough cash for a down payment, the buying, however, often seems out of reach.

“One of the biggest challenges with specialist equipment is that lenders outside the industry cannot always value the asset correctly,” says Joel Rosenthal, co-founder and chief executive of Charter Capital. “When a lender thinks something is worth less than it’s really worth, they may offer a loan that isn’t large enough to cover the cost or refuse the business owner outright.”

Rosenthal says businesses will sometimes opt for an SBA loan, term loan, or line of credit instead, though strict credit and time-in-business requirements often rule out those options for growing businesses. With invoice factoring, they can accelerate cash flow enough to make a purchase, fill a financing gap, or provide a larger down payment.

“Invoice factoring is a welcome relief for small businesses preparing for growth,” continues Rosenthal. “We’ve seen an increase in the number of business owners using factoring for heavy equipment purchases lately because it’s so versatile and doesn’t have the same rigid requirements as other sources of financing. ”

Those interested in learning more about factoring can request a free quote by calling 1-877-960-1818 or visiting charcap.com.

About Charter Capital

Based in Houston, Texas, Charter Capital has been a leading provider of flexible financing solutions for the B2B industry for over 20 years. Competitive pricing, a fast approval process, and same-day financing help businesses in a variety of industries secure the working capital needed to handle day-to-day needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.

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Lack of heavy equipment financing creates obstacles for businesses