One of the challenges of operating a small business is navigating cash flow issues that may be unique to a particular industry. If a company requires equipment for its business operations, small business owners generally have a few advantages when it comes to equipment financing arrangements. Fortunately, there have been some recent clarifications with regards to treating home builders as small businesses.
Home Builders as Small Businesses
The Small Business Administration (SBA) recently redefined its standards with regards to “small business” sizes, which varies across industries and sectors. What qualifies as a small business is based either on the company’s revenue or the number of paid employees. Using this data, the National Association of Home Builders (NAHB) was able to determine that a majority of companies working in homebuilding qualify as small businesses. In fact, the NAHB reports that 96% of homebuilders, 97% of specialty trade contractors, and 94% of land developers easily qualify as small businesses. As most small businesses generally aren’t flush with cash, the challenge of cutting overhead and boosting revenue is ever present. Fortunately, equipment financing for small business owners provides a ready solution.
Home Builder Equipment Financing
Leasing equipment for construction needs is one of the best ways for small business owners to have the latest technology on hand at a reasonable monthly cost. Equipment leasing is the most efficient use of working capital, which allows companies to both remain competitive and create a payment plan that suits their particular business model.
Having the proper equipment on hand is essential to the success of nearly any business, and particularly so in the competitive home building industry. While many builders might think that equipment financing is beyond their reach, this isn’t the case. There are different leasing options available and programs for special cases that can put equipment on site in a very short period of time.
To learn about equipment financing program options, or with any questions, contact us today. Our team is ready to discuss the specific needs of your business.