EQUIPMENT FINANCING
Whether you use walk-in coolers, MRI machines, server networks, or conveyors, an equipment loan helps you afford to bring it onboard. Even if you can afford to pay for the equipment upfront, an equipment loan can save you money. Instead of sinking cash into a new machine, maintain your available cash and leverage the new asset, paying down the equipment loan in manageable monthly installments.
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WHAT IS A EQUIPMENT FINANCING?
Heavy-duty machines and high-capacity networks don’t come cheap. If it’s built to last, it probably has a hefty price tag. That doesn’t mean that it’s out of your reach. Equipment financing can help you bring in new equipment, update existing equipment, and refinance another equipment loan.
When the equipment you need is already in place, you can leverage its value to bring cash into other areas of your business. One of our expert lenders will calculate the value of your equipment based on current market rates. Then, you can use that equipment to secure a cash loan. Take the cash and use it to cover payroll, utilities, marketing, and more.
ADVANTAGES OF EQUIPMENT FINANCING
- Break the expense of new equipment up over several smaller payments.
- Offload the headache of frequent repairs and replacements by leasing equipment.
- Equipment can be nearly anything meant to last several years or more.
- Improve cash flow by refinancing for a lower interest rate.
You don’t want to be paying on a loan for equipment you’re not using. So, if the expected lifespan of the equipment you need isn’t longer than the loan term, consider another form of financing.
Since equipment loans are secured on the equipment itself, a low credit score isn’t always a decision factor in approval. Your business’s annual revenue and length of time in business may be more important to a lender.
As an equipment owner, you may be eligible for a depreciation tax benefit. This will depend on the type of equipment and how long you’ve owned it. Consult a tax professional for specific details.
Private lenders, traditional banks, and the Small Business Administration all offer equipment loans. The SBA, however, doesn’t service their loans directly. We can connect you to a lender who knows the SBA’s specific application requirements.
