Equipment can wear out over time, especially if it’s used frequently. Equipment that is able to keep up with daily tasks and functions that are required for businesses to perform well can be a necessity. Many business owners cannot afford to buy the expensive equipment or upgrades that are necessary for their operations. There are many companies that offer finance programs to help business owners purchase equipment for their businesses.
Due to the tighter lending criteria and economic climate, many private equity companies have refocused on operational improvements in their portfolios, rather than financial engineering. Jeff Drazan is the Managing Partner of Bertram Capital. The firm, which has its headquarters in San Mateo, CA, has always focused on creating value and driving growth through an operationally-focused approach.
Rent or lease equipment?
Most finance companies offer a variety of financing options including leasing programs. Leasing is a good option because it doesn’t usually require a deposit. It can be a great option for businesses with little or no capital. A lease allows an owner to finance the full cost of the item, plus any extra costs such as taxes or delivery fees. Leases can give small businesses or online businesses more flexibility by allowing them to return an item at the end or purchase it after the principal has been fully paid.
Bertram Capital has a particular interest in businesses that are growing and have a strong foundation to support expansion, but who haven’t yet reached their full potential. They partner with management teams that are superior and provide capital and strategic resources in order to help support future growth, and build value for shareholders. Private equity investing is likely to become more common as the economic uncertainty continues.
A loan for equipment may be needed to upgrade older equipment, replace outdated equipment, or add to an inventory of equipment. Many loan officers ensure that the business owner has excellent credit before they approve an equipment loan. A business loan is a great option for online businesses or small businesses that have proven to be successful. Financing has the advantage that once the loan is repaid, the equipment will be yours.
Jeff Drazan, along with the Bertram team, developed The Bertram Capital High 5SM. This proprietary framework is designed to facilitate rapid, profitable growth. Bertram Capital’s portfolio companies are built on these five areas to create significant value.
1. Marketing & Sales Improvements:
Focus aggressively on accessing new markets, developing innovative products and implementing best-in-class operational practices.
2. Strengthening Management:
Join forces with management teams that are superior, and supplement them as necessary to meet the business’s needs.
3. Outsourcing and off-shoring
Reduce costs by outsourcing and offshoring. Utilize global labor forces, as necessary, while maintaining high quality products and services.
4. Leveraging Technology & IP:
Apply technology to increase operational efficiency, create cutting-edge product and service offerings and invest strategically in intellectual property portfolios.
5. Add-on Acquisitions:
Buy and build strategy focuses on complementary and accretive purchases.
What are the advantages of a loan for equipment?
Jeff Drazan, his team and Bertram Capital have a well-defined approach to investing that is operationally focused. They are therefore in a good position to become a leader among middle market private equity firms. The outlook for middle market business growth is strong as more private equity firms adopt the methodology. This is especially true given the high level of private capital that’s waiting to be deployed.
Financing for business equipment has many benefits. Equipment loans are deductible from taxes. It may be useful to talk to the lender or a business tax attorney for more information. A flexible payment schedule is another benefit of financing. It can be a great relief for business owners who need to replace their old equipment but still run their business. Many lenders offer monthly or biannual payment options, depending on the type of loan. It is important to work and speak with the lender to determine what works best for your business.
