Business optimism was up during August, something that typically lends itself to an increase in small business loans. According to the latest index reading from the National Federation of Independent Business (NFIB), August saw an increase of 0.4 points to 96.1 – the second-highest reading since 2007.
However, there are still bumps in the road for small business owners to contend with.
“Expectations are still glum, although improving grudgingly,” said NFIB Chief Economist Bill Dunkelberg. “More owners still think business conditions will be worse in six months than think they will be better. Few see the current period as a good time to expand.”
Not all news from the small business world was gloomy, however. The number of business owners reporting higher sales during the previous three months improved slightly. Meanwhile, earnings trends increased by one point.
The pace of inventory reduction also improved by one point. The NFIB reported that the net percent of business owners who see their current inventory stocks as “too low” improved as well.
One factor that was not discussed by the NFIB was whether small businesses are comfortable in the amount of equipment they have. While small business lending recently reached a seven-year high, according to the Thomson Reuters/PayNet Small Business Lending Index, this is not the only option for business owners looking to purchase needed equipment.
Equipment leases represent one alternative for businesses seeking new equipment without taking out a loan.
Leasing to the rescue
Whether it’s a restaurant equipment lease or a lease for IT devices, there’s no doubt this option can be a boon for business.
Unlike taking out a loan to purchase equipment, business owners can depend on obtaining what they need without taking on unneeded debt. Additionally, leases can be a great option to avoid dipping into cash reserves.
Every business is different, and sometimes taking out a loan may not be the option an owner wants to pursue. In these cases, a flexible, affordable leasing option could be the ideal fix.