The Types of Financing Your Wireless Business Needs to Grow

Types of Financing for Wireless Providers
Types of Financing for Wireless Providers

The Types of Financing Your Wireless Business Needs to Grow

Small and mid-sized wireless providers face a new challenge. The current coronavirus, COVID-19, a pandemic that is sweeping the world, has shown businesses and educators that there is another way to conduct business and school—online at home! As schools are scrambling to meet the needs of students that lack internet access, employees are desperate to find a reliable wireless provider that meets their needs. Rural communities and communities with a lack of options are finding the transition into a more digital world difficult and frustrating.

Wireless provider companies have an excellent opportunity to rise to the occasion by expanding their networks and subscriber areas into new communities and increasing their Wi-Fi capabilities with faster download and upload speeds, more bandwidth, and better reliability. The problem that these wireless providers face is the ability to pay for all the upgrades and expansion. Without an upfront increase in subscribers, how can a company gain capital for growth?

There are four types of telecommunication companies that are addressing internet needs. Broadband internet is the method of delivery used by these companies and is the industry standard for high-quality, reliable internet. Cable, WISPs, FISPs, and Hybrid companies will each have different financing needs and methods for obtaining that financing. We’ll break it all down for you below so you can decide which methods apply to your internet company.

Cable Telecommunications Companies Financing

Cable operators should be looking to the future and how they can implement new wireless solutions to their traditionally wired models. Many wired providers are focusing their 2020 expansion efforts on becoming a hybrid solution that can offer both wired and wireless internet options for residential and commercial customers.

One of the ways cable operators are entering the hybrid space is by expanding their infrastructure to get more cable fiber laid throughout communities. Expanding your infrastructure is a costly expenditure, and many small to medium-sized cable operators don’t have the capital to expand without the customers already locked in. Luckily, banks are beginning to understand the financing needs of internet providers. However, there is still a long way to go in trying to reconcile asset-backed collateral with the projections of financial growth and the ability to repay when the monthly cash flow may not be reflected yet.

WISPs Challenges in Finding Financing

Wireless internet services also provide broadband internet access and are one of the fastest-growing, albeit newest, forms of internet provider services. The return on investment for WISP company owners is much higher than the other competitor companies. WISP companies are generally aimed at increasing their subscriber base through expanding their infrastructure.

WISPs need financing to expand their infrastructure throughout neighborhoods by adding fiber to connect more broadband pipes to towers. In-home technology also needs to be top-of-the-line and high quality if WISP companies want to be competitive. More towers and antennas are needed and are some of the most expensive technology to build and operate.

WISPs have one of the most challenging times obtaining financing through traditional banks because of the lack of collateral these businesses have. Many bankers do not want to take the risk in lending to WISPs based on growing subscriber bases that could fluctuate at any time.

FISPs Financing

Fiber Internet Services Providers are very similar to WISPs because they use fiber to transfer the internet. Fiber is the most reliable and considered the optimal way to deliver internet access. Most WISPs that use fiber are often considered to be hybrid because they can offer wired connections through fiber as well. FISPs and Cable operators are the most trusted internet service providers currently on the market and generally have much better success in obtaining traditional financing.

Hybrid Internet Service Providers

One of the ways that internet providers are finding is the fastest, easiest, and most profitable way to expand and grow is to become a hybrid internet service provider. As cable operators begin to offer wireless solutions and WISPs begin to expand by laying more fiber and broadband pipes, these companies become hybrids.

Fiber is costly to deploy because of how labor-intensive the process is concerning wireless solutions that rely on tower signals and in-home equipment. Because fiber is the most reliable, internet providers need to begin using fiber in their operations. Many hybrid companies use fiber in their towers, however, and don’t always run fiber straight into consumer homes.

5G and Wireless Expansion

One thing that all internet service providers need to invest in is the 5G technology the world is seeing spearheaded by the United States. This new technology is expected to be the leading mobile network technology by 2025, and home internet companies need to get on board as 5G changes the landscape of wireless access.

Financing Solutions for WISPs, FISPs & Other ISPs

When banks fail to understand the financing needs of WISPs and other service providers, these companies may also face a stall in their expansion and growth efforts. One way to get the financing these providers need is to go through capital investment funding. These sources of funding are great for small and medium businesses, entrepreneurs, and operators that need financing for equipment, software, IT equipment, commercial trucks and trailers, and more.

Working capital loans are also an excellent solution for small and medium telecommunication companies that need extra cash flow for things such as payroll and business expenses. Repayment terms are often flexible, including monthly, weekly, or even daily payment options with low-interest rates and easy to understand terms.

Private funding groups often look at more than just collateral when they are determining the loan you qualify for and focus on annual revenue and bank statements showing the cash flow of the business. Working capital loans through private funding companies will also be different than the loans offered for equipment or software financing specifically.

When companies need specific financing for ventures such as new equipment and material to expand their infrastructure, the terms and conditions can be different than a loan that is for any business expense. Some of the differences can include interest rate and term length.

If you’re more interested in learning about financing for your internet company, contact Dimension Funding to get started on your approval process. 

Implementing Electronic Medical Records (“EMR”) Software for Small Healthcare Organizations

EMR & EHR Implementation
EMR & EHR Implementation

Implementing Electronic Medical Records (“EMR”) Software for Small Healthcare Organizations

In order to comply with the HIMSS EMRAM, many hospitals are adopting EMRs in order to move their organization closer to achieving a paperless environment and improve the quality of patient care. Many doctor’s offices, clinics, and managed care facilities are going to EMRs or EHRs because of the convenience of going to paperless recordkeeping.

Also, many healthcare facilities are trying to improve the patient satisfaction levels and having an EHR or EMR is a big part of their solution. By allowing hospitalized patients to review their charts, order their dinner, access the internet or watch TV via electronic means, it improves the overall patient experience, particularly for extended hospital stays.

Adopting electronic medical records comes with its own set of problems. It can take months or even years to fully incorporate or update an EMR system depending upon the size of your organization and the level of HIMSS compliance that you wish to attain. It can also come with a large price tag.

Implementation is An Expensive Process

A major issue with EMR software is how expensive it can be. Implementing a full system for an EMR can cost over $150,000 for just one physician. The total cost, of course, grows much more expensive the larger the medical facility and the more advanced the software and hardware.

Because of this, it’s important for any medical facility looking to implement an EMR system to consider the high cost into their budget. Not only is the upfront cost of implementing such a system high, but it needs to be maintained and occasionally updated to keep in line with the latest regulations.

So, it’s imperative that these costs be taken into consideration when managing an EMR system for any medical organization, whether it be a large hospital or a small physician’s office.

Required Training

Another important thing to keep in mind with any EMR system is the training that is required to use them. This training includes medical personnel & doctors as well as staff. It can involve a whole new system of doing things within the healthcare organization when they move from paper to computerized records. It can take many months and sometimes years in order to completely implement an EMR system.

This creates yet another cost that must be factored in when considering the budget for the EMR system as well as a hurdle that needs to be overcome before the system can even be used in the first place.

Cutting Edge Software and Hardware

When moving from paper medical records to electronic records, most healthcare organizations will need new hardware, security and IT personnel. This can be a large investment. The computers will need to have the capacity to run the EMR software and any patient satisfaction software. You’ll want computers that are able to do double-duty: be used by the doctors and staff to enter information and, for patients who have overnight stays, a patient engagement platform so that they have a good experience with the hospital or healthcare facility.

Additionally, for many healthcare organizations, it’s likely that it will need tablet PCs with scanners in order to scan prescriptions, patient wrist bracelets, and implement other patient tracking requirements.

There are also security concerns with electronic records including HIPAA requirements that means investing in security technology and IT personnel.

All this adds up to a substantial investment in new hardware and personnel.

Options for Small to Medium-Sized Facilities

Many smaller healthcare organizations can’t afford the substantial upfront costs of implementing an EMR system. The solution to this is to finance the upfront costs and the subscription itself. This allows the organization to pay for the EMR and its implementation in monthly payments over an extended timeframe which is much more manageable.

However, the decision to finance an EMR needs considerable attention as there are a lot of factors involved, including deciding on a finance company, determining how money needs to be financed, and factoring in the monthly payment along with all the other monthly costs that the organization must budget.

Fortunately there are companies with specific expertise in the financing of EMR/EHR solutions that can work directly with busy practices to help them create a financing program that meets their objectives and enables a simple, easy and efficient solution that enables all of the various costs of engagement to be aggregated together with one monthly payment over a term that meets budgeting requirements.

One of the primary goals of the practice when considering the EMR/EHR acquisition is the ability to conserve their working capital and not disturb existing banking lines of credit. For that reason, many healthcare professionals have relied on financing programs and have found that results in the most economically feasible approach for moving forward.

Further, there might well be Section 179 tax benefits available when selecting to finance this important technology.

FOUR WAYS THE TCJA CAN SAVE YOU MONEY ON BUSINESS SOFTWARE

Save money on your taxes with the TCJA

FOUR WAYS THE TCJA CAN SAVE YOU MONEY ON BUSINESS SOFTWARE

Save money on your taxes with the TCJA

By now you’ve probably heard about the Tax Cuts and Jobs Act, President Trump’s major corporate tax bill. Known commonly as the TCJA, this law has already had far-reaching effects around the nation. But nowhere has its impact been felt more strongly than in the business sector. In fact, many industries will experience double-digit reductions in their tax liabilities under this new law (source: Ernst & Young).

If you’re wondering how the TCJA can help serve your company’s bottom line, you might find that major savings can come from an unexpected place—software that you buy and use to run your business. The TCJA has expanded companies’ ability to deduct the costs of buying, renting, and financing software more than ever before.

For more details about how much you can claim in deductions for business equipment and software, see the [first article in our series.] For now, here are four steps you can use to take advantage of software deductions for your business:

  1. Find out which software is eligible for deductions. The first thing you’ll want to do is learn exactly which types of software do and do not qualify for deductions under the TCJA. There is a specific list of parameters set forward by the IRS that determine eligibility.
    • The software has to be used by your business for the purpose of producing revenue, either directly or indirectly.
    • The software must have a lifespan of ‘usefulness’ that can be clearly determined (This essentially means that the effectiveness of the software for your business must be clear.)
    • The software must be expected to be functional for at least one year or more.
    • The software can’t be totally custom to your business—it must be available to the general public at large for purchase and not heavily modified for your company’s use.
    • The software can’t be purchased on an exclusive license. That means it’s not only your software, but can be used by others with their own licenses.
      This might seem like a lot of strict parameters, but the good news is that most software qualifies under all of these stipulations. As long as software is available to the public and used by your business for a clear income-generating purpose, you’ll generally qualify for the deduction.
  2. Learn how section 179 works and what it means. We discussed Section 179 in the [first post of this series]. It’s the section of IRS tax code that applies specifically to which equipment and software purchases can be deducted and for how much.
    Under the Tax Cuts and Jobs Act, the deduction limit for 2019 has increased to $1,000,000 with a spending cap on equipment purchases set at $2,500,000. You can also temporarily deduct 100% of depreciation costs for 2019, though this number will decrease in the coming years.
  3. Consider financing your software purchases. The TCJA’s new rules allow businesses to deduct the full cost of equipment and software purchases made by a business in the year those purchases are made. Amazingly, that also applies to financed purchases.
    What does that mean for you and your business? It means that financing software can actually increase your cash for the fiscal year. If you were to finance $100,000 in software in 2019, but only make $5,000 in payments over the course of the year, you’d still be able to claim a deduction of $100,000, resulting in savings of tens of thousands of dollars.
  4. Ensure your software purchases qualify. If you’re planning on taking advantage of the tax benefits of financing software for 2019, it’s important to make sure your purchases qualify. The IRS treats software much in the same way it treats all business equipment purchases. That means that to qualify, the software must be purchased and put into use in the same year that it’s being claimed.
    The software must also be genuinely new to your company, and it can’t have been bought from an entity that has any direct connection to your own.
    Software is an essential aspect of nearly every modern business and industry. And now, thanks to the Tax Cuts and Jobs Act, buying or financing computer software is a smart financial move in its own right. If your business is in need of vital software, there’s never been a better time.

If you’d like to learn more about financing software for your business, contact Dimension Funding today.

Four Steps to Maximize Working Capital Deductions Under the TCJA

Maximize Working Capital Deductions Under the TCJA

Four Steps to Maximize Working Capital Deductions Under the TCJA

Maximize Working Capital Deductions Under the TCJA

As you know, working capital is what’s left of your business funds after factoring in income and costs through the fiscal year—and it can determine whether your business struggles or thrives. That’s why many companies turn to short-term working capital loans when they temporarily need to extend their working capital.

But many businesses fail to take advantage of major tax deductions when it comes to the short-term working capital loans they receive. Why? Because they don’t know that recent bills like the Tax Cuts and Jobs Act (TCJA) make it easier than ever to claim deductions on these loans. That makes short-term working capital loans more financially viable and accessible than ever.

Let’s look at four ways you can take advantage of deductions on your working capital business loan:

  1. Recognize what qualifies as working capital. The good news is that interest paid on nearly any type of business debt can be deducted under the Tax Cuts and Jobs Act and other tax laws. That includes short-term bank loans, other bank loans, lines of credit, real estate mortgages, credit cards or even car loans used for business purposes. Even a personal loan that’s used to cover business expenses can be tax deductible. That also goes for business loans where personal property is used as collateral.
    You must be the party legally responsible for the repayment of that debt for it to qualify. You’ll also need paperwork showing the debt transaction—a UCC-1 statement provided by your bank or creditor is the most effective. Similarly, you must be able to show the IRS that you and your creditor are taking steps to repay the debt. This includes proof of payments and proof of those deposits provided by the lender.
  2. Understand which parts of debt you can deduct. It’s important to remember that only interest on your business debts can be claimed. The principal repayment value of the loan can’t be deducted, since this isn’t considered income earned by your business.
    You also can’t claim a deduction on loan interest until the borrowed money has been put to use. That means it must be spent for a purpose relating to your business, not just kept in the bank. Loaned monies deposited into a bank are considered an investment and thus aren’t eligible for loan interest deductions. They may be eligible for deduction as an investment expense—but you should talk to an expert to see if you qualify under those IRS regulations.
  3. Accurately deduct loans used for personal and business use. Many businesses don’t realize that even interest on personal loans can be deducted as long as some portion of that loan was used for business purposes. You’ll simply need to determine and clearly show which portion of the loan was used for business expenses, and then only deduct that percentage of interest in your tax filing. The same applies for business-centered loans that are partially used for personal reasons.
    For example, let’s say you took out a working capital loan and used it to purchase some equipment. Let’s also say that you use that equipment for personal use around 15% of the time. You’ll be able to deduct 85% of the interest on that purchase, since that’s the amount used for business reasons.
  4. Avoid non-deductible loan expenses. Certain types of debt aren’t eligible for tax deductible interest. These include interest on large loans made off of life insurance policies for employees or owners, as well as interest on loans used to pay taxes or penalties that are owed or overdo. (C-corps are exempt from this rule, as they can claim deductions on tax debt loans.)

If you can learn the best ways to take advantage of business loan payment deductions through tax laws like the TCJA, you’ll be able to save money for your business and ensure that working capital is always available to get you where you’re going. These four steps will put you on the right track to increasing your deductions and decreasing your liability this tax season.

If you’d like to learn more about financing software for your business, contact Dimension Funding today.

FIVE STEPS TO SAVE THOUSANDS ON EQUIPMENT WITH THE TCJA

Save money with the TCJA

FIVE STEPS TO SAVE THOUSANDS ON EQUIPMENT WITH THE TCJA

Save money with the TCJA

In 2017, President Trump signed into law the Tax Cuts and Jobs Act— a sweeping new tax law with far-reaching effects for businesses of all sizes (source: IRS). While pundits will debate its benefits for the nation, what can’t be denied is that it brings huge value to business owners and their bottom lines. Of the $1.5 trillion in lowered tax liability thanks to the TCJA, $950 billion of that number will go to the business sector (source: Ernst & Young).

One of the most powerful impacts of the TCJA is the way it makes Section 179 tax regulations and bonus depreciation work for businesses. The idea of delving into tax law might not thrill you, but if you’re a business owner who’d like to save thousands or even hundreds of thousands on expenses—it should. It’s not as complex as it seems, and the new changes in the TCJA could transform the way you manage equipment costs and other business costs throughout the year.

Steps to Make TCJA Work for You

Here are some steps you can take to make the TCJA changes work for you:

  1. Take time to understand Section 179. Section 179 outlines how businesses can write off the expenses of qualifying equipment in their annual tax filings. The problem used to be that businesses could only write off amounts based on the depreciation of their equipment. If you purchased or financed equipment for $100,000, you might only be able to write-off around $10,000 per year in depreciation.
    With the introduction of the Tax Cuts and Jobs Act, you can now write off the entire cost of most equipment purchased and used during the year—up to as much as $1,000,000 for 2019. The best part is that this write-off even applies to equipment that you lease or finance. We’ll cover that more later, but for now let’s take a look at the types of equipment that qualify under Section 179.
  2. Learn the types of equipment you can expense. The Tax Cuts and Jobs Act not only increased the total cost you can deduct in equipment expenses, it also expanded the types of business equipment whose costs you can deduct (source: Section179.org). If you purchase or finance and put into use any of the following equipment during the calendar year, it can be claimed on that year’s taxes:
    1. Equipment purchased for use by your business, including machines and other physical equipment
    2. Vehicles with a gross vehicle weight (GVW) greater than 6,000 pounds used for your business
    3. Computers
    4. Office equipment and office furniture
    5. Software that has been purchased from a third-party and hasn’t been custom coded for your business
    6. Qualifying equipment that’s used partly for business and partly for personal use; deduction is based on percentage of business use versus personal use
    7. Equipment and property that are attached to your business’ physical building, including large manufacturing machinery or other equipment; structural elements of the building don’t qualify
    8. Non-structural improvements to your existing commercial building, including HVAC or roofing and security systems
      As you can see, a large majority of the equipment you might purchase for your business qualifies for the TCJA’s raised deduction limits. So do your research to ensure that you claim deductions on equipment everywhere you can.
  3. Harness the bonus depreciation increase to 100%. Under the TCJA, bonus depreciation has increased to 100% for 2019. That means that even after you’ve used your Section 179 deduction to lower the purchase price of new equipment, you can take an additional bonus depreciation deduction of 100% of what remains. This 100% bonus depreciation isn’t permanent and will likely be lowered in 2023.
  4. Finance business equipment to boost your bottom line. With the increased power of Section 179 and bonus depreciation thanks to the Tax Cuts and Jobs Act, choosing to lease or finance equipment in 2019 could be more profitable than you can imagine. Think of it this way—you can deduct the full purchase cost of equipment without paying the full purchase price for that equipment. For example, let’s say you finance $50,000 worth of machinery beginning in November of 2019, with monthly payments of $500. By the end of 2019, you’ll have only spent $1,000 on your equipment, but will be able to deduct tens of thousands of dollars—the full price it will cost to finance that equipment.
  5. Qualify and save. Besides falling under one of the categories listed in the Types of Equipment You Can Expense section above, there are a few other conditions your equipment will need to qualify for these deductions and savings. The equipment must be bought and put into use in the year its claimed, and the used equipment must also be new to your business. Similarly, you can’t lease or purchase it from an entity with direct connection to your business.

Beyond these conditions, the equipment can be bought, rented, or financed and still qualify for complete Section 179 and TCJA deductions and bonus appreciations.

Financing equipment for your business rather than paying cash has always been a great way to maintain cash flow for your business. But the TCJA act has radically boosted those benefits by letting you deduct the full cost of that financed equipment during the tax year it was put into use.

Gauging The Growing Pains: The Hidden Costs Of Brewery Expansion

Hidden Cost of Brewery Expansion

Gauging The Growing Pains: The Hidden Costs Of Brewery Expansion

Hidden Cost of Brewery Expansion

As a brewer with a passion for your product, the last thing you want to do is stand still. If you make beers that people love, you everyone to have a chance to enjoy them. There’s no doubt, then, that you’ll expand your sales at the first opportunity. But before you do, you should be aware of the costly challenges that brewers face as they grow larger, including:

Big League Branding

As a local brewer, you had automatic authenticity with your customer base. You understood their culture, cuisine, and drinking habits, and could thus cater directly to them. But as you expand into other markets, you’ll have to start selling to people you don’t know as well. It will thus be an uphill battle getting them to try your beers instead of sticking to their current favorites.

To build authenticity in a community you’re not part of, you will need to conduct comprehensive market research and build a tailored publicity campaign. This strategy is expensive and takes time, so make sure you have access to flexible, affordable working capital to pay for a campaign every time you expand into a new market.

A Cornucopia of Codes

Brewers are subject to a host of health and environmental regulations, and those regulations vary across local, state, and (especially) national lines. Thus the more you expand, the greater your likelihood of running into regulatory issues. Your best bet is to research all the laws and statutes every time you move into a new jurisdiction, and do everything you can to comply with them ahead of time. But this can be expensive, especially if you have to invest in new equipment. Thus make sure you have either the savings or the working capital to make costly investments upfront.

Climbing Capacity

Expanding your operations frequently requires adding production capacity, which means investing in expensive capital equipment. The problem with such investments is that you have to make them months before you achieve any sales in the new market. Consequently, you’ll need to raise a large supply of cash as soon as you make the decision to expand. Unless you have ample cash on hand, working capital is likely the best way to raise this money. Even if you do have cash on hand, you might still want to use working capital, as it will prevent you from tying up all your money in expensive equipment investments.

To learn more about working capital for brewers and countless other businesses, contact Dimension Funding today.

Electric Vehicle Enhancements: The Benefits Of Purchasing EVs For Construction

Benefits of Purchasing Electric Vehicles for Construction

Electric Vehicle Enhancements: The Benefits Of Purchasing EVs For Construction

Benefits of Purchasing Electric Vehicles for Construction

When you think of futuristic technology, what do you picture? If you see an electric car, you’re not alone! Electric vehicles offer an unprecedented opportunity to abandon fossil fuels without sacrificing speed or convenience. While most people picture such vehicles in the hands of ordinary drivers, they also have significant commercial applications, especially in the construction industry.

As a construction company looking to invest in new technology, electric trucks, cranes, and other vehicles should be at the top of your list.

 

The Many Benefits of Electric Vehicles

Electric construction vehicles and equipment are among the best investments you can make as a construction company. They aid your company on multiple fronts, including through:

  • Sustainable Branding– With electric vehicles, every time local utilities add renewable sources or improve efficiency, your carbon footprint will fall. Your company will thus continuously grow more sustainable over time. Not only is this a good in itself, but clients who care about the environment will be more likely to choose you, leading to higher revenues.
  • Convenient Charging– Electric vehicles prevent you from having to deliver fuel to your worksites, instead charging your equipment with power from the grid. And while it currently takes a long time to do this, recent advances in battery technology may soon allow you to charge in as little as five minutes. You can thus keep all of your vehicles powered up at a fraction of the effort that it currently takes.
  • Silent Solutions– Vehicles and construction equipment that rely on electric technology make little noise. Considering that concerns over noise pollution are among the most common barriers to new construction projects, adopting electric vehicles gives you more flexibility in terms of where and when you build.

While these and other benefits make electric vehicles a great investment, not all companies have the resources to invest in this way. Electric vehicles are still highly expensive, putting them out of the price range of many new and small construction firms. And while they are falling in cost, waiting for them to become affordable for your firm could force you to defer considerable profits.

If you don’t have the money for such investments but want to reap the profits now, consider purchasing electric construction equipment with working capital. Working capital loans provide generous, flexible funding for construction projects, allowing you to invest in equipment that lowers costs, raises revenues, and saves the environment. For more information on buying electric construction vehicles and other new technologies with this capital, contact Dimension Funding today.

Constraint-Free Construction: The Importance Of Financial Flexibility In The Building Industry

Constraint Free Construction

Constraint-Free Construction: The Importance Of Financial Flexibility In The Building Industry

Constraint Free Construction

Success in business is only possible if you plan ahead, and this is particularly true in the construction industry. Building companies have to deal with a wide variety of contingencies that can suddenly raise their costs or cut their revenues. This creates serious shortfalls, making it essential that you have flexible financing to cover them.

Working capital offers the financial flexibility you need to deal with these problems. By providing cash, they allow companies with few liquid assets to cover cost increases and revenue shortfalls. Thus by maintaining access to working capital, you can survive:

Rising Resource Costs

From wood to drywall to wiring to scaffolding, construction companies need countless resources. Relatively minor changes in commodity prices can send the cost of these resources through the roof. For example, a sudden increase in demand for metal can drive up the price of wiring, scaffolding, and pipes, among other resources. These developments may well raise operating costs above what you’ve budgeted for. Working capital loans let you cover the difference until either the costs fall back down or your revenues rise to match.

Sudden Revenue Shortfalls

No matter how reliable and honest your clients are, there’s always a chance that they’ll fail to pay for your services on time. Even clients who work with you in good faith may still have to deal with financial problems on their end, forcing them to stall payments. If they simply don’t have the money, there’s not much you can do other than wait for them to get it, but you still need to fund your company until they do. Working capital lets you pay for everything while you’re waiting, so that your company doesn’t miss out on future opportunities because of problems with past work.

Inclement Weather

While you likely plan your operations around weather forecasts, storms sometimes travel farther or prove more intense than predicted. This can delay your operations, and thus your payments, for days or even weeks at a time. In the meantime, you’ll have lots of fixed costs that you still need to cover. With access to copious working capital, you won’t have any trouble doing this.

Injuries & Safety Issues

When a worker gets injured, your costs can increase markedly. Not only must you pay for their workers’ compensation, but if the cause of the accident isn’t immediately apparent, you’ll have to stop construction, identify it, and shore it up. With working capital, you can cover all these costs, restore your business to full safety, and get back to work.

For more information on costly contingencies in the construction industry or to obtain the working capital to deal with them, contact Dimension Funding today.

Wagering On Washing: Why Improved Sanitation in Breweries Is A Worthy Investment

Improved Sanitation in Breweries

Wagering On Washing: Why Improved Sanitation in Breweries Is A Worthy Investment

Wagering on Brewery Sanitation

As a brewery, you don’t just have a responsibility to satisfy your customers. You also have to keep them healthy and safe! You understand the importance of sanitation, and the benefits of improving it at every opportunity. By investing in new keg washers and other brewery cleaning equipment, you can obtain the highest standards of sanitation in your industry. This leads to large and lasting benefits, making it one of the best ways to invest in your brewery.

The Benefits of Improved Sanitation in Breweries

While most breweries understand that sanitation is important, there are some who are not aware of the full impact it can have. By purchasing the best possible cleaning equipment and taking full advantage of it, you can:

  • Reduce Interruptions– If one of your customers gets sick from consuming your product, you may need to shut your operations down and fix the problem. Your costs will thus increase even as your revenues grind to a halt. Investing in better sanitation equipment reduces both the frequency and the severity of these interruptions, bolstering your company’s finances.
  • Build a Better Brand– By buying the most advanced sanitation equipment on the market, you go beyond other breweries and establish yourself as a leader in cleanliness. This causes customers to trust you above your competitors, leading to greater loyalty and more consistent sales.
  • Prepare for Future Standards– What is considered advanced sanitation tech today will become the industry standard down the road. By adopting this technology now, you have more time to adapt to it, allowing you to incorporate it more effectively and with fewer disruptions.

Through these and other benefits, investing in the most effective cleaning equipment pays for itself many times over.

How Working Capital Helps You Invest in Cleanliness

Even after learning all the benefits of advanced sanitation, many companies are hesitant or unable to invest in it due to simple cost constraints. Cleaning equipment is expensive, and all but the largest brewers lack the cash to buy it outright. Thus when new devices become available, many brewers must slowly save up money before they can buy them.

Working capital loans let you skip the saving and start cleaning. They provide generous funding for new equipment, so you can make improvements now and then pay for them as your costs fall and revenues rise. As a result, you’ll never have trouble staying ahead of the curve on sanitation.

For more information on working capital, financing equipment, sanitation, and other keys to success in the brewing industry, contact Dimension Funding today.

Shocks To The System: Sources Of Disruption In The Brewing Industry

Brewery Equipment Vendor Financing

Shocks To The System: Sources Of Disruption In The Brewing Industry

Sources of Disruption in the Brewing Industry

To paraphrase Murphy’s Law, if there’s a chance that something can go wrong, sooner or later it will. No one needs to understand this maxim better than brewers. The brewing industry has to deal with a wide variety of disruptions that can raise costs, lower revenues, or otherwise threaten production. In order to weather these issues, you must maintain access to a steady source of working capital. This is particularly important if you are dealing with:

Sanitation Scares

No matter how diligent you are about keeping your brewery clean, there’s always a risk that there will be some sort of health or sanitation problem with your product. Often, such problems are the result of issues with your ingredients and other supplies, which you may have had no way of knowing about ahead of time. Regardless of the source, you’ll likely have to stop production for days or even weeks so that you can clean your equipment and replace any contaminated supplies.

Working capital is essential when you’re facing sanitation issues. Not only will revenues fall because you can’t sell your product, but depending on how extensive the cleaning is or how much inventory you have to replace, your costs may increase dramatically. With working capital, you can stay above water financially until your production lines are back up and running.

Climbing Costs

Besides health and sanitation issues, you may have to deal with sudden increases in the cost of key supplies. Perhaps there is a crop failure that reduces the availability of an ingredient that you rely on, driving up the price of remaining stocks. It’s also possible that the cost of maintaining and replacing brewery equipment will rise.

While you can adjust to costs increases by cutting costs elsewhere or raising your prices, it may take time before you are able to fully make up the difference. Working capital lets you keep your business running in the meantime, giving you the breathing room to get your finances in order.

Inadequate Brewery Equipment

Success in brewing means responding to new market opportunities, but sometimes your equipment can hold you back. Say you identify an untapped market for a certain type of beer, but you don’t have the equipment to make it. Unless you can get that equipment, you’ll lose that market to someone else. Working capital allows you to buy new equipment and pursue such opportunities whenever they arise.

Dimension Funding offers working capital and equipment leases for breweries and countless other types of businesses. Contact us today to learn more about how our capital can benefit your company.