One loan doesn’t always cover everything you need to cover. That’s just the way it is.
What do I mean by that, you ask?
Think about the inherent impossibility of paying for everything you need in one loan. Say you lease a brand new soda machine, like the revolutionary Freestyle machine. Now that you’ve done that, you probably want to let your local community know you’ve got one and draw them in to the store, and you’ll want some money on hand for the necessary syrups and maintenance that will go into it.
For that, you’ll need what we like to call bolt-on working capital. This is when you get a working capital loan or other type of financing and attach a smaller, separate loan that can be used to cover a host of expenses outside of the equipment itself. With a good finance company, you’ll be able to “bolt-on” that working capital loan to the lease or loan you’re already pursuing.
The beauty of working capital loans*, of course, is how versatile they are. That’s why you can use them to cover all the additional expenses that come along with a piece of new equipment, thereby preventing you from having to return later for an entirely new loan and the accompanying paperwork and time that comes with that.
Being ready for those additional expenses is a valuable leg up, because what good is that new machine if no one knows about it? I’d strongly encourage you to explore that with your financing provider next time you talk to them.
Have you ever used bolted-on working capital loans before?
Photo credit to iStock
*Working capital not available in the following states: AK, DE, ND, VT