Equipment loans can be used to purchase new or used equipment.
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Equipment is one of the most important assets for any business.
An equipment loan can be used to purchase new or used equipment. Like most business expenses, equipment typically pays for itself over the course of its lifetime. Fully functioning equipment leads to increased productivity and a better production process. It’s next to impossible to maintain a business without the right tools.
A malfunctioning piece of equipment can be the death of a young business in certain industries, so it is critical to replace these assets as quickly as possible. Equipment loans offer a unique opportunity to acquire the capital necessary to finance the cost of replacing high-cost equipment.
Most business equipment can be financed.
Outside lending is often the only option when you need access to capital to make business purchases. While traditional lending sources are available, businesses often look for alternative sources of financing. If the need is immediate or the time to purchase equipment is limited, an unsecured loan may be the best option available. Because the process is much faster than traditional lending, new equipment can be purchased quickly with very little interruption to production.
Benefits of Equipment Loans
We work with different lenders who’re all trained to handle industry-specific loans
No matter the source of your loan, be sure to match its term with the expected life span of your new equipment. If you’re buying commercial kitchen equipment that you expect to use for five years, get a loan with a five-year term. A shorter term may have you scrambling to make payments, and a longer term will have you paying off the equipment even after you stop using it.
To qualify for equipment financing, You must have been in business for not less than 12 months, have at least $50,000 as annual revenue and your credit score must not be less than 650. However, you can also qualify with a credit score of less than 650 if you can prove that your business has enjoyed solid revenues and cash flow for the last 3-6 months.
Leasing typically does not require a down payment. This is especially beneficial for those businesses with little to no available capital. If a down payment is required, it is typically relatively small compared to what a traditional loan down payment would look like.
With a lease, you can finance around 100% of the cost of the item or items plus around 20 – 25% of the so-called “soft costs.” Soft costs include any taxes or delivery charges
We are here to give business owners the opportunity to get the most money at the lowest rates with the best terms.