equipment financing
TO LOWER COSTS AND RAISE REVENUE
Equipment financing is a loan that allows businesses to purchase essential equipment without liquidating assets or incurring debt. This form of asset-based lending provides access to funds with minimal down payment, helping companies preserve their working capital.
HOW DO THEY WORK?
- Funding Amount: Up to 100% of the Equipment Value
- Term Length: 7 Years
- Interest: as Low as 6%
- Funding Time: 24 Hours
- Monthly Payments
WHAT YOU NEED TO KNOW
The self-collateralized nature of equipment financing can make them slightly easier for some business owners to qualify for. Since the equipment also provides security for the lender (the lender can simply seize it and liquidize it for cash to recoup their losses in the event of a default), equipment financing rates and terms are usually considerably more favorable than, say, an unsecured business loan. Equipment also may be deductible under IRS section 179, which might help maximize tax breaks!
Uses
- Starting a New Business
- Upgrading Existing Equipment
- Expansion
- Experiencing Seasonal Lulls
- Needing Lease-to-Own Options
Loan Types
Lease Financing
- Lease equipment for a set period.
- Option to purchase at lease end.
- Upgrade without maintenance concerns.
Equipment Loan
- Traditional loans with equipment as collateral.
- Easier to obtain due to tangible assets.
Sale-Leaseback
- Sell existing equipment and lease it back.
- Frees up cash flow while retaining use of equipment.
When To Apply?
Do what makes sense
The right time to apply for equipment financing is when it is necessary to purchase new equipment. It is better not to delay the purchase of equipment, as this can increase the risk of downtime and decrease the overall efficiency of the business.
A great time to apply to equipment financing also presents itself when current equipment is need of an upgrade or maintenance, your company needs access to the latest technologies available in the market, or you require equipment for specific times of the year.
A great time to apply to equipment financing also presents itself when current equipment is need of an upgrade or maintenance, your company needs access to the latest technologies available in the market, or you require equipment for specific times of the year.
Uses
- Own the equipment at the end of the term
- Low or even no down payment options
- Competitive rates, sometimes as low as 5%
- Easier approval compared to unsecured loans
How to Get Financing
Funds can only be used to purchase the specified equipment. However, leveraging equipment as collateral often allows for larger loan amounts, lower interest rates, and more favorable terms.
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