Deciding to apply for a business equipment loan is a big decision for a small company. First, decide how much you can afford and whether that number will afford you the equipment you need. Next, find out where to get small business equipment loans.
Business equipment financing is actually pretty attainable in today's healthy economy. It's a matter of which type of financing works for your business. Conduct research on a variety of loan offers before jumping into the first loan you hear about.
If you're wondering how to find the best business equipment financing loans available, then you're in the right place. Here, we'll cover everything you need to know about purchasing vs leasing and some types of loans available, not to mention what they cover. Keep reading to learn more.
Advantages of Purchasing vs Leasing Equipment
Depending on your financial situation, specific factors may depend on your decision to purchase or lease your equipment. There are several advantages to both. The benefits of owning your equipment can outweigh all of the aspects of leasing, primarily if the equipment can be utilized for a long period of time.
It's an advantage when your business is in the position of growth showing an increase in production and productivity. You'll be eligible for tax benefits when you purchase new equipment. Check with your CPA for guidelines and regulations pertaining to your equipment purchase in your state.
To help keep things regulatory in your business, a majority loan companies will allow you to make payments based on current cash flow. You'll know exactly what your monthly payments will be and they should remain the same throughout the entire term of your loan. This compares to a lease with lower monthly payments at first and then gradually increasing over time.
Purchasing equipment allows you the opportunity to refinance it. Refinancing is acceptable in the event that your company is increasing revenue and not performing worse than when you initially received the loan. You have the option to lower your rate and redefine your payment structure. The major benefit is structuring the loan to work within your budget so that your business avoids experiencing financial burdens.
Imagine down the road to the lasting equipment that will still be operational in ten or even twenty years. You'll be glad you purchased that valuable equipment and all the use you got out of it. Some equipment has a lifespan that will long outlive the amount you had paid.
Why Leasing Can Be Good Too
Many lenders offer leasing options for equipment. Leasing can be a good deal especially if you'll be replacing the equipment frequently. In some scenarios, you may be able to significantly reduce cost and maximize your investment with a lease. You can write off 100% of a lease as a business expense on your taxes.
If you are interested, inquire with your leasing specialist about options to buy the equipment a few months into the lease. The smartest part you can have with a lease is to take advantage of technology and potential cost savings that are induced by continual upgrades.
Finding the Best Business Equipment Financing
When you're searching for the best business equipment financing, you want options that are quick and simple with processes that are easy to navigate. Equipment financing is a great way to preserve capital and avoid dipping into your credit line. You'll enjoy set terms with affordable payment options so you can easily budget for the equipment your business requires.
Equipment Financing or Leasing
With rates as low as 4.5% and repayment terms based on monthly and seasonal options, you can get an equipment financing loan for up to $250,000. Funding is as quick as 2-4 days with a term length of one to five years.
You can refinance your equipment up to $50,000 with rates as low as 7.5% for two to three years. Pay monthly for long-term working capital, debt reconsolidation, remodeling, equipment upgrades, and more.
For a hassle-free loan, consider a working capital loan for up to $150,000. Your term is short from one to twelve months with rates as low as 5.9%. Enjoy funding on the same day and pay schedules either daily or weekly.
Types of Equipment to Finance
From tractors and vans to espresso machines, there are all types of equipment that your business may need to finance. Rather than taking out a loan at the bank, why not consider a business equipment financing option?
If you're a small construction firm with plans to expand your business, new and updated equipment is one way to do it. Whether it's a new excavator, backhoe loader, or bulldozer, you can get it with an equipment financing loan.
Depending on the nature of your business, it may make sense to classify your equipment as commercial. Your commercial vehicle or commercial restaurant oven counts as commercial equipment.
Whether you run a small nursing home or deal with patients at any level of service, you need medical equipment that is reliable. Count on a small business equipment financing loan to get the equipment you need to run a successful venue.
In today's era of fast moving equipment and technology, you can never really be completely up to speed. Stay ahead of the pack with an equipment financing loan to invest in the proper technologies that your business needs to succeed.
Some manufacturing equipment doesn't last long for the heavy load it bears on a daily basis. Rest assured that you can get new equipment as you need it with equipment financing you can count on.
Restaurants need all sorts of new equipment at various times. Don't dip into your cash flow, get a small business equipment financing loan instead.
A business equipment financing loan is the best thing you can do for your company if you need new equipment or technology to grow your business. There is no need to use your working capital or any business line of credit, or worse, credit cards. Equipment loans are designed and tailored to your business' needs so that you won't find yourself in debt later down the line.
When you're ready to invest in new equipment, look no further than right where you are. Visit our contact page to get started.