Imagine an office with all the work force but not a single piece of equipment! Can a small business owner run a successful business in the given scenario? Equipment is one of the core ingredients of a successful business. To be fair, by looking at the prices of the tools and apparatuses, one would like to imagine running a business without all the hardware. Fortunately, multiple alternative and traditional lenders are offering Equipment Financing, offering you a golden opportunity to buy all the necessary tools for your small business.
What is equipment financing?
The borrowers use Equipment Financing to borrow assets such as a commercial copier, restaurant oven, or a food delivery truck. This financing allows the borrowers to finance up to 100% in most of the cases. Most business owners who can’t afford expensive equipment, apply for the equipment financing to purchase the equipment before the borrower pays the final amount. Or often times, small business managers are not in the financial position to take the money out of their back-up drawer to pay for the broken equipment. In this case, applying for an equipment financing option is one of the safest routes to take. With fast approval, flexible loan payments, and no need to offer extra collateral you can give your business a boost with the financing. If you have a credit score of 600 and above, have a running business for more than two years, and if your small business is generating $130,000 as annual revenue, then you must fill the financing loan application in a couple of minutes. Sit back and watch lending company take care of your financial worries!
Equipment Financing vs. Equipment Leasing
Before you start to explore your funding options, it is wise to know the difference between equipment leasing and financing. It all depends on nature and use of the equipment that you are trying to purchase.
A borrower can easily qualify for an equipment financing or loan, and the final borrowed amount depends on the nature of the equipment and creditworthiness of the borrower. Usually, the interest rate is from 8% to 30%. When applying for an equipment loan, you don’t have offer any extra collateral because the purchased equipment acts as collateral itself. If you like to want updated equipment for your business, then this funding option is not right for you. By the time you are free of making all the payment, make sure the equipment is still trending and relevant.
On the other hand, in the case of Equipment Leasing, you are renting the equipment. This comes with no down payment and no collateral; you only have to make the monthly repayments till the end of your lease. Once the borrower makes all the payments, he or she has two choices, either to end the contract or purchase that equipment on the market price. Despite being the expensive funding option, it keeps your equipment technologically updated. So, return the equipment once its need is finished and lease another updated now. Since in this economy, it is impossible to disrupt the incoming cash flow to purchase new equipment to stay ahead of rivals.
So what are the needs of your business? If your equipment needs are temporary, Equipment Leasing is a better option for you. On the contrary, the equipment is there to stay for a longer time; Equipment Financing would be a suitable funding option. Compare the payment terms, evaluate your equipment needs, and apply for the funding option that satisfies your need.
What businesses can benefit from Equipment Financing?
As a lack of working capital can hinder the growth of your business, so does a piece of dysfunctional equipment! If you run one of the following businesses, then Equipment Financing can provide some assistance to you.
Where ever there is a population, there is a construction business. Construction business is nothing without equipment. Bulldozers, motor graders, loader, and excavators construction business owners need multiple pieces of equipment to construct a road or build a house. Equipment Financing gives access to this heavy machinery at an affordable rate.
A farmer can take benefit from a small business loan in many ways; the extra cash flow can help you buy fertilizers or feeders. With equipment financing you can either purchase a new tractor or even repair the old one. As it is a seasonal business, so flexible terms are beneficial for the farmer.
Equipment financing provides hospitals and medical care centers with equipment to provide the best care possible to patients. The funds can be used to purchase any surgical device, CAT scan, fMRI or, CT scan machines. Whether you are a dermatologist, who needs a laser machine or a veterinary who needs an x-ray machine. You can get everything you need with the help of Equipment Financing.
Apart from these other businesses such as transportation or other services business can lease a delivery truck or use the funds to repair any broken equipment. The ways to use the Equipment Financing are endless!
Tools or gadgets available for financing!
Merchant Advisors provides financing on equipment used in construction, agriculture, and much other business. If you run a restaurant loan, you can get financing on the following equipment:
- Cooking Equipment Financing
- Restaurant Fixtures Financing
- Commercial Restaurant Freezer Financing
- Baking Equipment Financing
- Warming and Holding Equipment Financing
- Bar Equipment Financing
- Commercial Pizza Oven Financing
- Ice Machine Financing
- Wine Cellar Financing
- New or used Restaurant Equipment Financing
- Grinder or Slicer Equipment Financing
- Commercial Range Hood System Financing
- Commercial Fryer Financing
So, use Equipment Financing to boost your small business and get the tool you have your eyes on! Head over to our website and apply for Equipment financing right away. For more updates and ways to use Equipment Financing to your benefit, follow us on our Twitter (@Onlinecheck) and Facebook (@Onlinecheck). In case of any question, feel free to call us on our toll-free number at (833) 827-4412, our loyal and keen financial advisor will answer your every question and guide you throughout the way.