Equipment Financing

Equipment financing

Equipment Financing

Seeking to acquire equipment for your business? Getting equipment financing is the best way to finance up to 100% of the value of machinery, commercial vehicles, computers or other equipment your business needs. Equipment finance works for those businesses that are finding it difficult to get traditional funding. has over 300 equipment financing lenders who are ready to provide equipment financing based on your needs.

Types of Equipment Financing

Equipment Loan and Leasing Equipment

With equipment loan, you can acquire new equipment immediately and conserve the working capital for other purposes. This method is often cheaper as you make payments monthly for a set period. Equipment loans require good credit score from a business and involve more paperwork. Leasing equipment can also be a good alternative for businesses as they can purchase the equipment after the end of the lease. Leasing requires reasonable credit from the business and you can get approval within a few business days.

How Equipment Financing Works?

When you need business equipment, apply for equipment loan to or lease equipment from a lender or financial institution. However, the amount of equipment finance you can get will depend on the type of equipment to be bought by your business and whether you’re buying new or used equipment. Leases have more flexible terms than equipment loan and can be obtained without any down payment

The equipment will serve as collateral to secure your equipment loan or leases, so there is no need to put up any additional collateral. The lender will buy and own the equipment and then it will rent the equipment to the business at a fixed interest rate for a fixed term length. At the end of the leasing, the business can buy the equipment at fair market rate or sell it & lease a new one. The term of the commercial equipment financing will depend on the nature of the equipment and its expected usual life. Some lenders will help you identify potential tax benefits of business equipment loan and leasing.

Who qualifies for equipment financing?

Most businesses can qualify for equipment financing. Any tangible asset such as computers, heavy machine tools, office furniture, commercial vehicles, computer hardware & software, medical & dental equipment, restaurant equipment, etc. that are required to run a business all qualify for equipment loan. However, the value of the equipment, business history, and credit rating will also determine the amount of loan you can borrow and interest rate you’ll have to pay.

Who provides equipment finance?

Equipment financing is provided by a variety of lenders, depending on your credit score and your needs. These sources include:

• Commercial bank loans

• Alternative private lenders

• Credit unions

• Government-backed SBA loans

Buying equipment outright is very expensive for a small business. Equipment financing via loan or leasing are the best ways to acquire new or used equipment. If you’re not sure whether to take out an equipment loan or lease it, fill your loan needs and business credit score in the loan application form that will help you determine which option best fits your needs.

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