Equipment financing
New equipment can vitalize your business’s growth. However, its costs often exceed your current budgetary constraints. Equipment financing can help you get the cash for the new equipment your business needs. Additionally, equipment financing also applies to securing a loan through the value of your current equipment.
What is Equipment Financing?
Equipment financing helps you cover the costs of new pieces of equipment. Many people picture huge, industrial machines when they think of new equipment. This leaves them with the concern that they will not qualify for financing. However, equipment financing is more flexible than you might imagine. It can cover all sorts of equipment from computers and computer software to desks and company phones. You can use equipment to pay for just about any regular technology, tool or equipment your business relies on. So whenever you need funding for something around the office or workplace, reach out to one of our loan brokers to discuss how equipment financing can help. You can even use equipment financing to lease new equipment if you do not intend to buy.
In addition to acquiring new equipment, equipment financing extends to the assets you already have. Using your current equipment holdings, you can apply for a secured loan. A secured loan needs some sort of physical asset as collateral in the event that you cannot make payments. Secured loans require lower credit scores since they have an asset to collect on. The amount you can receive depends on the value of your equipment. In some cases, you can sell your equipment in a pinch and avoid interest payments. However, when you need that equipment to function, your business might suffer. Instead, you can sell equipment and then lease it for a lower cost until your finances stabilize or you obtain long term financing. You can use the cash obtained from equipment financing loans or sales to cover bills and expenses.
FLEET VEHICLES
You can use equipment loans to keep your business automobile fleet updated. Whether you need a fleet of cars, trucks or tractors, our brokers can find the lender who best meets your needs.
ROBOTICS
Industrial manufacturers can use equipment financing to update their assembly lines. Get the latest robotics technology to keep your production moving, and use an equipment loan to make it happen.
SOFTWARE
It might not have a physical form but that does not mean you cannot use equipment financing to obtain it. Architects, engineers and animators all use high end software to operate. Use an equipment loan to keep up with state-of-the-art software.
Equipment Financing
Has Big advantages
- Get state-of-the-art equipment
- Use the value of current assets to secure funding for new ones
- Boost cash flow with current equipment value
f.a.q'S
When to Avoid Equipment Financing?
Sometimes the term of the loan will exceed the lifespan of the equipment itself. This means you might end up paying for equipment you no longer use. If you need equipment with a shorter lifespan, or if it breaks often, consider a different form of financing. Our loan brokers can help you find the exact financing option that suits your particular needs.
Failure to Repay the Loan?
Since equipment loans are tied to the equipment you purchase with them, failure to repay means you forfeit ownership of the equipment to the lender. Additionally, using current assets to secure loans means that you will lose the equipment you put on the line.
What is the Length of Equipment Financing?
You can get an equipment financing loan typically for between 12 and 72 months. Work with our brokers to source the term length that works best for your business.
What Financing Fits You?