Event Companies Make 73% of Their Equipment Decisions in Q1

You may still have your holiday decorations up, but make no mistake: the purchasing season for the party and event rental industry has already begun.

The big stat to know: Event rental companies make 73% of their yearly equipment acquisition decisions between January and April, as they gather inventory for the spring and summer seasons that generate most of their annual revenue.

Why it matters: The Q1 decision window is compressed and urgent.

• Event companies that don’t expand inventory before their busy season are likely to miss an entire year of rental revenue from those assets.
• They need brokers who can connect them to fast financing and reliable approvals.

How to join the party: Want in on this bonanza? Here’s what interested brokers should know: 

• It’s a big tent (literally): Event rental companies need financing for a wide range of equipment, from the mundane —tents, tables, chairs, etc.—to the latest and greatest entertainments, including inflatables, bounce houses, DJ gear, party equipment, and more.
• They’re ready to act now: Event companies understand that equipment purchased in January generates rental income starting in April, while equipment purchased in June will largely sit idle until next year. 
• Rental revenue supports payments: Event equipment pays for itself through rentals. (A $15,000 tent that rents for $500 per event generates positive cash flow almost immediately during the season.)
• Equipment variety and event success create repeat transactions: Successful event companies continuously expand their offerings. Tents lead to tables, tables lead to linens, linens lead to lighting, and so on, creating ongoing, rewarding financing relationships.