You can get that piece of equipment that will help you to expand your business and start making more money now with equipment leasing
The lender purchases the equipment, then rents it to you for a monthly rate.
At the end of the term, you can either purchase it for market value, continue leasing it, or return it to the lender.
Business equipment financing help business owners acquire equipment that would normally be too expensive to buy with cash.
A business equipment loan is very similar to an auto loan, where the purchased item itself acts as collateral.
Equipment loan is great with every type of equipment and every type of industry, but here are a couple examples.
In the construction industry, there are lenders that offer equipment financing for heavy machinery.
In agriculture, there are lenders that specifically help small farmers.
Qualifying for an equipment loan can be relatively easy.
Approvals are typically based on credit score, years in business, financial history and value of the equipment.
The equipment cost normally needs to be over $20k.
Equipment financing interest rates range from 8 to 25%.
With equipment financing, the purchased equipment itself is used as collateral for the loan.
There are also lenders who will lend on application only as long as collateral is available and a down payment of 50% is available as well.
Most of the time, the immediate ROI from the equipment pays for the loan earlier than expected, making it a good financing option.
