When it comes time to invest in business equipment, securing a small loan to cover costs may be the smartest financial move you can make.
How It Works
Most equipment loans have fixed interest rates between 8% and 30%. While the loan will cover the cost of any equipment type, the amount you borrow depends on the type of equipment you plan to buy and whether it is used or new.
The equipment that you already own serves as collateral for the new loan. The extension of the term depends on the nature of your equipment and its expected life. Few lenders are willing to extend the term of an equipment loan beyond the expected life of your equipment.
Do I Qualify?
Your Interest rate as well as the size of the loan you qualify for depends on your equipment’s value and the history of your business. Equipment financing is one of the best options if your credit rating is less than perfect because the equipment you own collateralizes the loan.
A Note on Leasing
Some business owners are choosing to lease equipment instead of purchasing it. While leasing offers several advantages, the obvious downside is that you will not own the equipment once the term of the lease has expired.
The Benefits of Equipment Financing
A major benefit of equipment financing is that you are spared the expense of whole equipment costs. While you may spend more over the life of the loan, spreading out the costs over an extended time period frees up cash during those critical moments when you need it to grow your business.
Additional benefits of equipment financing include quick access to cash, limited paperwork, the ability to build credit and potential tax benefits.
Fill Out Our Simple Online Application
It’s fast and easy. Again, you don’t need any personal financial information to submit your application and be considered. Everything is based on business performance. If you have any questions, we’re standing by to help you.
Consult With Our Loan Advisors
Based on your application, we’ll help you consider all your options and pick the best financial solution for you. We know the challenges small businesses face and will offer expert advice for your unique situation.
Close On Your Loan Or Line Of Credit
We’ll help guide you through the entire process, serving as your personal liaison to over a hundred fine lenders. It’s what we do every day, serving small businesses like yours throughout the U.S.
Our loan consultants will contact you with approval. In as few as 24 hours, you could secure the working capital you need and peace of mind you want.