Financing equipment allows companies to retain greater reserves, remain flexible, invest elsewhere, and grow their businesses faster. Purchasing new vehicles and equipment doesn’t have to cripple your cash flow — when you take advantage of flexible financing options for equipment. Equipment financing from a non-bank lender can be the solution for your business. Equipment financing from a non-bank lender can be the solution for your business.
While some business owners choose to invest in their working capital to buy what they need, others think financing business vehicles and equipment is a better alternative. In addition, companies that may struggle to opt for other types of financing should to qualify, achieve financing of equipment more easily.
What are the benefits of equipment financing?
If you’re in the market for new equipment, a tailored financing plan makes it quick and easy to purchase. Let’s take a closer look at the benefits of equipment financing loans and leases that are my specialty. Equipment financing allows you to make a number of payments over time, and the lender will absorb the depreciation of these payments over the funding period due to inevitable inflation. For one, financing equipment is a good idea as they provide instant access to cash so you can get your business up and running.
What do I need for an equipment loan?
Equipment will be returned to the owner at the end of the lease term unless you agree on both renewal terms or a buy-out. However, if the equipment is required for your business, the endless payments for leased equipment without the prospect of total ownership in the future can be a more costly option. As collateral for the loan, the lender can request a lien on the equipment as collateral for your debt, similar to a car loan. An equipment loan is fixed financing from a lender that is used to purchase vehicles and heavy equipment.
When a company applies for a standard equipment loan, the paperwork is far less than when applying for a specialty loan, such as an SBA loan.