(888) 789-4365

Business Equipment

  • The equipment is the collateral
  • Easier to get than a traditional business loan
  • Increase your business efficiency

Business Equipment

One of the most critical needs of a small business is equipment. Even if your business is a few or many years old, you will eventually need to replace some of the equipment. Now, these equipments can be too expensive to buy and anyway, they depreciate so fast. Leasing is the best way to go about it. The best thing about leasing is that you also enjoy tax benefits and rebates, same as the person that buys the equipment.

Whether you decide to lease or buy, you will find yourself in need of an equipment loan. Hunting for one can be easy or hard depending on many things. If you do not have to fork out the money to buy equipment out of your pocket, then you can have more capital to invest in other areas of your business. However, what do you know about business equipment loans?

The equipment is the collateral

One of the most critical needs of a small business is equipment. Even if your business is a few or many years old, you will eventually need to replace some of the equipment. Now, these equipments can be too expensive to buy and anyway, they depreciate so fast. Leasing is the best way to go about it. The best thing about leasing is that you also enjoy tax benefits and rebates, same as the person that buys the equipment.

Whether you decide to lease or buy, you will find yourself in need of an equipment loan. Hunting for one can be easy or hard depending on many things. If you do not have to fork out the money to buy equipment out of your pocket, then you can have more capital to invest in other areas of your business. However, what do you know about business equipment loans?

Pre-Qualify in minutes. Get started now.

Not a valid email address

Covers many types of equipment

Easier to get than a traditional business loan

Business equipment loans are easy to get. Here is why:

Less paperwork

No collateral needed, the equipment is the collateral

Fast processing time

May require less credit score for you and your business as well

Less stringent requirements for qualifying

So what happens when you default on payments?

A lot. For example, consider the business equipment start depreciating when you get it out of the store. Now, depending on the depreciation rate, you may have to pay the financier the difference in your own money because even if they repossess a piece of equipment, they may not sell it at a price that would allow them to recover all the money that you owe them.

One important thing to know

Most startup business owners wonder what happens to the equipment as it gets older. For example, because of the dynamism experienced in the technology field, many types of equipment become obsolete in a few years. They are replaced with newer and better equipment.

If you should need to trade in the older equipment and get newer ones, you should discuss that with the financier of the equipment. That, loan duration and other details should be discussed prior to putting your name on the dotted line.

Increase your business efficiency

Consider the amount of work that a packing machine can do for your business and then think of how much money you could lose if you opt to stay without one. Your competitors have all the equipment they need. However, as a startup, one thing that will always put you off is just how costly the equipment can be. With the business loan for equipment, you need not hamper your operations.

When hunting for a lender for equipment loan, ask whether they let you defer on the loan in the first 90 days of taking the loan. If this is available, you should take it. It is one of the questions to ask when taking out this loan.

How much will the loan cost you?

This depends on a few things among them the credit score of the business, the owner’s business score, the creditworthiness of the business and so on. What we mean by creditworthiness is whether you have established lines of credit and whether every transaction has been reported to the credit rating bureaus.

Usually, the interest of the equipment loan is 5% to 9%. If you have good credit score, you may get it at very friendly terms.

There are other charges though. For example, there is an origination fee that differs from one lender to another. It should not be too big.

The loan repayment term depends on a few things. One of them is the shelf life of the equipment that you are buying. The next one is the type of the equipment and its cost. Usually, the payment duration is 1 to 5 years, but some heavy, industrial equipment may be allowed to stretch for up to 10 years.

Down payment

Being one of the most sought after small business loans, you will be required to put down a down payment. Most lenders ask for 20%, but if you have very good credit and your business creditworthiness is high, you could be required to put down a payment of even as little as 5%.

Our small business financing experts are available to guide you through the funding Process.

 

At LCG, we fuse technology and the human touch to help lower search costs for borrowers and lenders while delivering better speed and customer service. LCG connects borrowers to a nationwide network of banks and lenders. Our team of dedicated funding specialists help borrowers get the right financing product and work quickly to help you secure the capital your business needs.
  • Instant Quote Online

    Use our instant online quote calculator to get an accurate no obligation quote.

  • Apply Online

    Complete our quick online application. Application takes 5 mins.

  • Review Your Options

    We will contact you to review your options.

  • Get Funds

    Money will be deposited in your account in as little as 24 hours.

Business Equipmentkazaa 9:36 pm January 20th, 2018