Whatever your firm’s specialty, you can’t do a job well without the right tools. So as you work to grow your company by taking on more or bigger jobs, one thing is certain—you’ll eventually need more equipment. The challenge is finding a way to finance equipment while still covering the business’s day-to-day expenses.
Finding ways to invest in a business’s growth can seem like a catch-22 for many contractors. It goes something like this: no big job, no money for the equipment; no additional equipment, no way to get the big job. While finding a way to finance equipment can sometimes be tough, there are ways to strike a financial balance that can help you move toward that goal. For many businesses, the balance to strive for is healthy cash flow.
When cash flow is out of balance, a business can find itself constantly in a game of catch-up, simply hoping to collect money owed so the bills can be paid. If the money you’ve earned is still in someone else’s pocket, you understand how difficult it is to put earnings to work to buy new equipment or take other steps to invest in your business.
Here are some tips that will help you keep money coming in to cover day-to-day operating expenses and build up the working capital you need when it’s time to replace a backhoe or invest in a skid steer or dozer.
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