Equipment Financing is a loan product used to help business owners purchase any type of equipment needed to run the business. The loan amount is dependent upon the type of equipment needed, as the repayment term is usually as long as the expected life of the piece of equipment and if it is used or new. This particular financing solution usually implies a fixed interest rate and fixed term, in turn allowing for fixed, non-fluctuating payments. Equipment Financing is advantageous for many reasons:
What are the Pros of Equipment Financing?
- Approved in a few days to a few weeks
- Equipment leasing is flexible and doesn’t usually require a down payment (if it does, it is usually a small one) which is a plus for businesses without a big bank account
- Leased equipment may be returned or purchased at the end of the term
- Equipment loans can be used to update equipment and inventory or for equipment replacements
- Tax Deductible
- Flexible Payment Plans
What is Needed to Qualify?
- Great to excellent credit needed
- Resume may be requested to verify your character and risk
- Bank and credit card statements must be provided (number of months may vary)
- Profit and loss statement and balance sheets must be provided
- For approval, all you need to do is complete an application; other requirements may vary depending on the lender, but are usually simple