Get New Equipment For Your Business
Business equipment loans are more secure than other types of small business loans and lenders are sometimes more willing to work with you. These equipment financing loans help business owners conserve cash while acquiring expensive equipment that allows companies to grow revenues with certain tools or machinery.
This type of business financing is used just to acquire business-use equipment. Since every industry has its own types of equipment, these business loans are diverse. An equipment loan is similar to an auto loan in that the item purchased acts as collateral. Approvals for financing for business equipment are based on credit scores, length of time in business, financial history and the value of the equipment being financed.
Business equipment funding is a great financing option since an immediate ROI resulting from the purchase of the equipment pays for the loan. Other advantages are that often no down payment is required, thus preserving cash flow. The newly acquired equipment quickly adds to the business’ net value and as mentioned before, if done correctly, the new equipment increases net revenue.
Things To Know To Get Started
- Equipment serves as collateral
- Normally no down payment required
- Terms range from 3 to 6 years
- Interest rates range from 7.5% – 45%
- Monthly payments
- Used to purchase used or new equipment
- Increased revenue pays for the loan
Examples Of Industry Candidates For Equipment Leasing
- Agricultural Industries
- Construction Industries
- Service companies with fleet vehicles
- Heavy Machinery
To learn more about your equipment financing options for your small- or medium-sized business, get in touch with the small business loan experts at IGH Funding.