The last thing you want is to be caught off-guard when a key piece of equipment breaks down. The second-to-last thing you want is for expensive equipment to gather dust and be useful to no one.
Whether you’re talking about computers, backhoes or office chairs, it’s not a hell of a lot of fun for businesses to deal with the aftermath of something busting. While you can’t keep that rusting piece of construction equipment going forever, you can be ready for its death rattle.
Ask yourself these questions if you have broken equipment:
- Do I have a plan in place? If equipment does break down, do I have capital on hand to deal with the issue? If not, do I have access to equipment financing for a replacement? If not, consider exploring your options ahead of time. Equipment financing like that offered at Direct Capital
- Do I keep a good inventory list? You should know how much wear-and-tear is on your equipment, how old it is and where it came from. That way, you can reasonably anticipate when you’re going to need to start readying yourself to replace it.
And if your equipment is just plain idle, ask yourself this:
- Is there demand for my equipment? According to Key Equipment Finance, interviewed in the recent asset management issue of Monitor magazine, there’s a lot of demand for equipment in the fields of energy, marine, IT and medical. There’s less demand for corporate aircraft, agricultural gear and trucking equipment, so bear that in mind when you look to buy or sell.
One strategy is to know how to sell your broken or idle equipment to recoup some money on your initial investment. At Equipment Engine, for example, staff are seeing this happening more and more frequently, particularly with those assets that are gathering dust.
“We’re seeing more and more small business owners showing interest in selling idle assets through our consignment program,” said Equipment Engine, LLC President Richard Henderson.
Do you have a plan in place for your equipment, or are you in the market for equipment financing? Sound off below.
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